October 18, 2012 / 12:27 PM / in 8 years

Hawker Beechcraft says talks with Chinese suitor fail

A pilot stands by his plane, a Hawker Beechcraft T-6C Texan II, during the second day of the Dubai Airshow November 14, 2011. REUTERS/Nikhil Monteiro

(Reuters) - Aircraft maker Hawker Beechcraft Inc, owned by Goldman Sachs (GS.N) and Onex Corp OCX.TO, said it intends to emerge from bankruptcy as a standalone company after talks to sell itself to Chinese aerospace firm Superior Aviation Beijing Co failed.

The Wichita, Kansas-based maker of business jets, general aviation turboprops and military aircraft, filed for bankruptcy protection in May, unable to support a $2.5 billion debt load.

Hawker said in July it was in exclusive talks with the little-known Chinese firm over the sale of the company for $1.79 billion.

The companies could not agree on the terms of a plan sponsorship agreement, Hawker said on Thursday.

The company that would emerge from bankruptcy, to be renamed Beechcraft Corp, would focus on turboprop, piston, special mission and trainer/attack aircraft, Hawker said.

The company said it was evaluating strategic options with creditors for its Hawker product lines, including the closure of its entire jet business, if it does not get a satisfactory bid.

Hawker, which will file an amended reorganization plan, said general unsecured claims will be canceled and holders will receive equity in the reorganized company.

The case is In re: Hawker Beechcraft Inc, U.S. Bankruptcy Court, Southern District of New York, No:12-11873.

Reporting by A. Ananthalakshmi and Tanya Agrawal in Bangalore; Editing by Don Sebastian

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