Hawker Beechcraft headquarters in Wichita (Photo credit: AP)
WICHITA, Kan. (AP) — Hawker Beechcraft says the bankruptcy court has approved its request to enter into exclusive negotiations with a Chinese company interested in acquiring the Kansas plane maker. The decision handed down Tuesday allows Hawker Beechcraft to enter into talks for the next 45 days with Superior Aviation Beijing Company Ltd., despite the objection filed by the machinists union. Hawker Beechcraft says as part of the exclusivity deal, Superior must make a $25 million payment before the end of the week and a second $25 million deposit within 30 days. Hawker Beechcraft CEO Robert Miller says the agreement provides funding to preserve jobs while they simultaneously negotiate a potential sale to Superior and prepare to emerge as a stand-alone entity if those talks fail.
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Machinists Union Objects to Hawker Beechcraft Sale Negotiations
WICHITA, Kan. (AP) — The machinists union is opposing Hawker Beechcraft's efforts to enter into exclusive talks with a Chinese firm for the sale of its civilian aircraft operations. A motion filed Monday in U.S. bankruptcy court in New York asks the judge to deny a request seeking up to 45 days to negotiate with Superior Aviation Beijing Company, for the sale of the Kansas manufacturer for $1.79 billion. Superior has agreed to pay $50 million during the exclusivity period to cover operating costs for the business jet company while the deal is finalized. The union contends the proposed sale to a Chinese government-backed entity has implications for the U.S. economy and national security. It also objects because Superior would not assume pension obligations. Hawker Beechcraft said it would issue a statement on the issue at a later date.
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