Reuters: Bankruptcy News: UPDATE 1-Hawker Beechcraft in talks with Chinese company for sale

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UPDATE 1-Hawker Beechcraft in talks with Chinese company for sale Jul 9th 2012, 20:43 Mon Jul 9, 2012 4:43pm EDT July 9 (Reuters) - Bankrupt aircraft maker Hawker Beechcraft Inc said it was in exclusive talks with China's Superior Aviation Beijing Co over a sale of the company for $1.79 billion. Superior, a maker of plane engines and parts, will also make payments to Hawker Beechcraft over the next six weeks to support its jet operations, under the terms of the exclusivity agreement. The sale does not include Hawker's defense business, which would remain a separate entity. A company controlled by the Beijing municipal government owns 40 percent of Superior. Hawker Beechcraft, which was bought by Goldman Sachs Group Inc's private equity arm and Onex Corp in a leveraged buyout in 2007 for $3.3 billion, filed for Chapter 11 bankruptcy protection in early May. The planemaker said it had considered operating as a standalone entity but decided to proceed with Superior's offer as it "creates the greatest value for the company." "Importantly, this combination would give Hawker Beechcraft greater access to the Chinese business and general aviation marketplace, which is forecast to grow more than 10 percent a year for the next 10-15 years," the company said in a statement. Superior will perform confirmatory diligence during the 45-day exclusivity period. If the companies successfully negotiate a definitive agreement, it would be subject to a competitive public auction process, Hawker Beechcraft said. Link this Share this Digg this Email Reprints

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