The airline industry has experienced highs and lows over the past few years, especially in the manufacturing sector. Now, news sources say that one company has agreed to file for bankruptcy protection in exchange for eliminating $2.5 billion worth of debt. Hawker Beechcraft, which operates out of Wichita, Kansa, filed for Chapter 11 bankruptcy in New York last week. Company executives have agreed to sign over ownership of the company to its creditors as part of its reorganization deal. In return, the company will have a large portion of its debts dismissed. In addition, the business will be given $400 million to keep operations running until the bankruptcy case has been completed.
This is the second aeronautical company in Wichita to experience financial trouble. Earlier this year, Boeing decided to shut down its Kansas plant. Beechcraft hopes to keep its doors open by obtaining a lucrative contract with Light Air Support Air Force, the same contract that was obtained by two rivals but was recently canceled. Planning to file for Chapter 11 to eliminate business related debt? If so, take the time to consult a San Antonio bankruptcy lawyer from our office by contacting the Malaise Law Firm to arrange an initial case evaluation where your questions can be answered.