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Hawker Beechcraft Executive Bonuses Denied By Bankruptcy Court
By Mike Mitchell

August 24, 2012 - The International Association of Machinists and Aerospace Workers (IAM) welcomed the decision by the U.S. Bankruptcy Court in New York to deny a $5.3 million bonus plan for eight senior executives at Hawker Beechcraft. 

In a ruling that concurred with the IAM objection to the plan, U.S. Bankruptcy Judge Stuart Bernstein said Hawker failed to prove that the plan was an incentive plan which is allowed under bankruptcy law and not simply an executive retention plan which is not permitted. 

“This is an important win for stakeholders at Hawker Beechcraft, including employees and the Wichita community, all of whom want to see Hawker succeed,” said IAM Aerospace Coordinator Ron Eldridge.

“We remain opposed, however, to any recovery or restructuring that favors executives at the expense of the men and women who built this company.” 

The IAM represents more than 3,000 active and laid off workers at Hawker Beechcraft and is one of the largest industrial trade unions in North America, representing nearly 100,000 aerospace workers among 700,000 active and retired members in dozens of industries.  

Hawker Beechcraft which builds the Beechcraft and Hawker business jet lines of aircraft entered into bankruptcy on May 3, 2012, the company filed voluntary petitions under Chapter 11, Title 11, United States Code in U.S. Bankruptcy Court after defaulting on interest payments and was in breach of banking covenants in April 2012.  

The bankruptcy resulted in the company accepting an offer to be purchased by Superior Aviation Beijing of The People's Republic of China on July 9, 2012. Hawker Beechcraft is headquarters is in Wichita, Kansas, United States, with maintenance and manufacturing locations worldwide. The history of Hawker Beechcraft originated in 1994 when Raytheon merged its Beech Aircraft Corporation and Raytheon Corporate Jets units.


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