- By Molly McMillin
- The Wichita Eagle
Hawker Beechcraft is working on a “path forward” to put the company on firm financial footing, its CEO said as the company filed 2011 financial results, which showed staggering losses.
As expected, Hawker Beechcraft posted losses of $632.8 million last year and sales of $2.44 billion, the company said in a filing with the Securities and Exchange Commission on Friday.
That compares with sales of $2.8 billion in 2010 and losses of $304.9 million.
Hawker Beechcraft has “substantial indebtedness,” it said, which totaled $2.33 billion on Dec. 31.
The company also has issued $51.2 million in letters of credit and, in March, borrowed an additional $124.5 million to fund ongoing operations.
That amount of debt could have “important consequences,” the company said in the filing.
It could mean that Hawker Beechcraft may not be able to satisfy its obligations on the notes, obtain additional financing, capitalize on business opportunities or react to pressures and changes in the industry, it said in the filing.
If it’s not able to make payments, refinance the debt or obtain new financing, the company warned it may have to consider other options, the filing said.
Those options could include sales of assets, sales of equity, negotiations with its lenders or filing for Chapter 11 bankruptcy, it warned.
The company delivered 291 airplanes last year, compared with 318 the year before.
Its backlog of orders at Dec. 31, 2011, totaled $1.13 billion, down from $1.4 billion at the end of 2010.
Hawker Beechcraft CEO Steve Miller said in a news release Friday that the company will make some important decisions in the coming weeks.
“Today’s (Friday’s) filing reflects the combined effect of the prolonged weakness in our market that has continued to affect our business and the heavy debt burden the company has operated under since 2007,” Miller said in the release. “Hawker Beechcraft continues to work closely with our lenders to restructure the company’s balance sheet, and to do so as quickly as possible. In the coming weeks, we expect to decide on a path forward for Hawker Beechcraft that will include a plan that will put the company on firm financial footing and better position Hawker Beechcraft for the future. As we move forward with this process, we remain steadfast in our commitment to building, selling and servicing the best airplanes for our civilian and military customers.”
Hawker Beechcraft had filed last month for an extension to submit its 10K SEC filing.