Hawker Filing Hints At Possible Sale

By: Wichita Business Journal Email
By: Wichita Business Journal Email

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July 2, 2012

At least six companies appear interested in buying Hawker Beechcraft Corp. — or some part of it — according to a weekend filing by the company in bankruptcy court.

The June 30 filing, which became available to the public Monday, outlines steps the company has taken since its initial filing for Chapter 11 bankruptcy earlier this year.

And it shows that Hawker and its advisers have been aggressively marketing the company to potential buyers.

According to the documents, Hawker initially identified 35 potential buyers “ranging from strategic purchasers to potential private equity partners.”

From there, 15 potential buyers were directly contacted. That group was comprised of three domestic and 12 international parties, of which 13 were potential strategic buyers and two were potential financial buyers.

Hawker then issued non-disclosure agreements to 10 of those parties, nine of which executed them and were granted access to company information.

Five of the potential buyers either came Wichita themselves or sent representatives to visit Hawker’s headquarters and manufacturing plant.

The filing states Hawker spent approximately five days having in-person discussions with potential buyers.

In addition, four other prospective buyers were visited in their respective home countries, according to the filing.

Finally, on June 19, Hawker’s financial advisory firm sent letters to six bidders requesting revised proposals.

The deadline for those proposals was June 22.

The filing does not say how many of the requested revised proposals Hawker received, only that it is evaluating them and has not yet made a definite decision on a possible sale.

In a letter Monday briefing employees on the weekend filing, the company says it is evaluating “all strategic options available to us” including “continuing to operate as a standalone entity and evaluating a potential sale of the company.”

Analysts have speculated that it could be tough to find a buyer interested in purchasing the all of Hawker’s product lines.

The disclosure statement on reorganization filed over the weekend does not contain a plan for reorganizing the company as a standalone business going forward.

Hawker’s letter to employees says that as it proceeds “we will update this preliminary filing with more detail about our going-forward business plan.”


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