Business with Little Rock Ties Announces Plans to Rise from Chapter 11 Bankruptcy
Jan. 28, 2013
A company with ties to Little Rock has had its Chapter 11 bankruptcy plan approved by creditors. An article from Arkansas Online examined the details of Hawker Beechcraft Inc.’s maneuvers and how they will affect the company and state of Arkansas in the coming years.
The company will have to designate a new board of directors to oversee the company’s operations as part of the $600 million deal struck with JP Morgan Chase Bank and Credit Suisse AG. In turn, the company will receive the financing needed to pull itself out of bankruptcy by late February. The deal also will allow for the company to receive a term loan from the banks as well as a revolving credit line.
While the deal will help Hawker Beechcraft get back on its feet, downsizing will have an impact on the local economy. The Bill and Hillary Clinton National Airport says it will lose approximately $600,000 in income since the company will not be renewing a lease it held on five hangers and nearly 50 acres of land at the facility.
The financing is contingent on approval from the courts that hear Arkansas Bankruptcy cases.
The Little Rock Personal Injury Attorneys with Rainwater, Holt & Sexton understand that tough economic times have made some businesses financially unstable in the area, and suggest discussing debt relief options with an attorney if your business is struggling to stay afloat.