Hawker Beechcraft could file for Chapter 11 bankruptcy as early as Thursday, according to a Wall Street Journal article today.
The company is in the final stages of preparing a “pre-arranged bankruptcy” and will hand ownership over to several hedge funds, sources told the Wall Street Journal.
It’s negotiated a restructuring deal with lenders. A filing could come as soon as Thursday, depending on how quickly lawyers can finish up documents.
The company has more than $2.3 billion in debt.
In a pre-arranged bankruptcy, creditors would agree to a deal ahead of time.
The creditors would convert more than $2 billion of its debt to equity in a restructured company, which would eliminate nearly all the debt on its balance sheet, the article said.
Hawker Beechcraft would continue to operate and employees would continue to get paid, it said.
During the proceedings, Hawker could also explore its alternatives, including the possible sale of its business lines, the article said.