Hawker Beechcraft files for bankrupcy protection

Color me shocked. They don't build a single product that hasn't been replaced by something else, other than the T-6 (which isn't there's to begin with). Piston single is outrageously expensive, as is the piston twin. Hawker 800 line is old, Beechjet 400 is even older design, with companies taking old jets and making them better than new. Premier has always been a niche airplane. KingAir is the only real airplane they can do anything with these days, and many people have jumped ship for a PC-12 or similar airplane.
 
Bankruptcy carwash.

Hose down the books, forget about the millions paid to the execs without any contractual grab-back or better ties to performance... and maybe see one exec tossed overboard to the waiting arms of another company, while he continues to serve on the BoD of at least three other companies in the industry.

No decision-makers wallets will be harmed in the shooting of this film.
 
$2.4 billion in debt? I don't like to think about how many airplanes they have to sell to make that. With aircraft rolling out the door in yearly double digits, tho sounds a lot like a slow death. Hope I'm wrong.
 
steingar said:
$2.4 billion in debt? I don't like to think about how many airplanes they have to sell to make that. With aircraft rolling out the door in yearly double digits, tho sounds a lot like a slow death. Hope I'm wrong.
Click to expand...

They don't have to now. They go to court and with a judge watching, they re-negotiate that down to probably 40% of what it is.

That's the whole point of my phrase "bankruptcy car wash"... all the big companies do it these days... pick a few strategic years to rah-rah and run up massive debt, making it LOOK like they have massive growth, execs drive the stock price up, and then start dumping (often under the guise of rules that say they MUST dump a certain amount a year if they own a lot of it), and then they change tune, start sounding gloomy about their large debts, and file for bankruptcy.

Nothing new here. Hawker/Beechcraft isn't going anywhere. Too many military contracts.
 
So they would not be able to execute on the LAS contract, if they won it. Way to go. Did the put a fundamentally weak bid in as a last resort to postpone up the imminent collapse? Remember all that whailing about "buy American"? Nobody mentioned that the company was insolvent. Jeez!
 
It's been in their 10K for a while now that they were taking on massive debt. No one on the Street is really surprised.
 
no one in Wichita is surprised either, this has been a long time coming. I don't really understand why they wouldn't be able to execute on the LAS contract because of this. It's not like they are shuttering the plant.
 
zaitcev said:
So they would not be able to execute on the LAS contract, if they won it. Way to go. Did the put a fundamentally weak bid in as a last resort to postpone up the imminent collapse? Remember all that whailing about "buy American"? Nobody mentioned that the company was insolvent. Jeez!
Click to expand...


Um yeah HB is exactly in this mess do to under bidding the previous T-6 contract and the US Military driving changes that cost $$$$ in losses to HB. Thanks Uncle Sam! :rolleyes:

Yeah, buy American. If not companies go bankrupt. HB was exactly in this position 20 years ago and the JPATS program saved them then. Unfourtunately extra cost and being unable to get the LAS contract cost them.

Any of you haters want to guess were all that cash for the Tucano is gonna end up? Not in America.
 
Last edited:
You must log in or register to reply here.
Back
Top