Hawker Indenture Trustee Says Ch. 11 Plan Unconfirmable

Law360, New York (November 28, 2012, 3:18 PM EST) -- Wilmington Trust NA, the trustee under a subordinated notes indenture with Hawker Beechcraft Inc., objected Tuesday to the bankrupt aircraft manufacturer's proposed reorganization plan, saying it violates subordinated noteholders' rights, illegally rewrites the parties' contract and is “inherently unconfirmable.”

The trustee filed a limited objection to the debtor's amended disclosure statement for its Chapter 11 plan, saying it ignores the plain language of the subordinated notes indenture by providing that common stock due to subordinated noteholders will go to holders of senior notes claims.

“The debtors...
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