HawkerBeechcraft, the troubled jet maker owned by Goldman Sachs Capital Partners and Onex, has agreed to sell itself to a Chinese aviation company for $1.79 billion.
The potential sale to aerospace manufacturer Superior Aviation Beijing could secure Hawker’s future after it filed for bankruptcy protection this year. Superior would keep Hawker Beechcraft’s existing operations, the Kansas-based company said in a statement on Monday.
Goldman and Onex, the Canadian private equity firm, bought Hawker Beechcraft in 2007 for $3.3 billion, loading the company up with debt at the height of the market for business jets. The industry has suffered since the onslaught of the financial crisis, with global sales of general aviation aircraft tumbling from 4,272 in 2007 to about 1,865 last year, causing the company to struggle to repay its creditors.
Hawker in May filed for Chapter 11 bankruptcy protection and began reviewing options, including continuing as a standalone business or an outright sale. A reorganization plan filed in June would give control of the company to secured creditors, canceling out the equity stakes owned by Goldman and Onex.Page 1 of 3 | Next Page