The airlines industry has had a rough go over the last few years. As the economy pushes more airlines into bankruptcy protection, even aircraft manufacturers are succumbing to the financial pitfalls of a sinking market. Yesterday, a well known aircraft maker, Hawker Beechcraft, announced their Chapter 11 filing.
A drop in demand for aircraft has lead Hawker Beechcraft into financial trouble. As more economic pressure builds with each passing month, Beechcraft executives decided filing for Chapter 11 debt reorganization was the best move to protect the future of the company. Although hundreds of employees have been laid off in recent months, the company is hoping that the bankruptcy filing can resolve their debt troubles and regain profitability.
Claiming nearly $2.5 billion in debt, Hawker Beechcraft is confident that the Chapter 11 filing will allow for the company to gain some profit margins while it works its way out of the red. In order to do so, the company secured a $400 million in Debtor-in-Possession financing to help “continue to pay employees, suppliers and vendors.” For right now, it is business as usual at Beechcraft as no major disruptions are expected for employee benefits or 401(k)s .