A U.S. Bankruptcy Court in Manhattan has approved Hawker Beechcraft's plan for reorganization. The confirmation paves the way for the aviation company to emerge from Chapter 11 in a couple of weeks.
Under the reorganization terms, the company will rename itself Beechcraft Corporation. It will focus on turboprop, piston, special mission, trainer and attack aircraft and parts and maintenance.
The judge also signed off on a pension plan agreement for the International Association of Machinists. The measure ensures that all union members will receive the full, vested amount of retirement pension benefits. The company reached a separate agreement to compensate salaried employees and retirees whose pension benefits would otherwise have been reduced.
Steve Miller, Hawker CEO, said Friday's ruling marks the final significant step in the restructuring process.
"We have been guided by the goal of emerging in a strong operational and financial position," Miller said.
Hawker Beechcraft expects the Plan to become effective by the end of February.