Report: Hawker Beechcraft Readies Bankruptcy Filing

Reuters is reporting that Hawker Beechcraft is preparing to file for bankruptcy protection in the next few weeks.

According to the report, Hawker is negotiating a prearranged bankruptcy with its largest lenders, which include Centerbridge Partners, Angelo Gordon and Capital Research & Management.

Bloomberg News had reported yesterday that Hawker had struck a deal with lenders that would have provided it with a $120 million loan as it negotiated with creditors to avoid default.

Hawker had been purchased by Goldman Sachs Group Inc’s private equity arm and Onex Corp. (another private equity firm) in 2007 for $3.3 billion.

ASA members doing business with Hawker may want to consult with a bankruptcy attorney concerning strategies for protecting any extensions of credit, as well as for protecting recent payments from claims of preference.