The company says that the US Bankruptcy Court for the Southern District of New York has granted approval of its 'First Day Motions' as part of the company’s voluntary filing for reorganisation under Chapter 11. Approval of these motions will enable Hawker Beechcraft to continue to operate during the reorganisation process.

Among the first-day motions granted, Hawker Beechcraft received approval to continue to pay employees, and to pay all vendors and suppliers in the ordinary course for goods and services delivered after the commencement of the Chapter 11 case. The company will utilise a commitment for US$400 million in Debtor-in-Possession (DIP) financing, negotiated as part of the prearranged restructuring, to meet these obligations.

On 3 May 3 2012, Hawker Beechcraft Inc and a significant number of its senior secured lenders and senior bondholders agreed to the terms of a financial restructuring plan that will eliminate approximately $2.5 billion in debt and approximately $125 million of annual cash interest expense.

Hawker Beechcraft Inc, the parent company of Hawker Beechcraft Corporation, manufactures business, special mission, light attack and trainer aircraft. It is headquartered in Wichita, Kansas, USA.

Hawker Beechcraft aircraft include the Hawker 4000 and Beechcraft Premier 1A business, which both feature composite fuselages.