Bankruptcy Judge Stuart M. Bernstein yesterday confirmed most of Hawker Beechcraft Inc.'s plan to exit bankruptcy under the control of a group of hedge funds, a ruling that the company hopes will lead to it being out of chapter 11 by the end of February, Dow Jones Newswires reported yesterday. Judge Bernstein signed off on most of Hawker's proposal, but said that the company had to change wording in the official plan document related to the worthless equity of operating subsidiary Hawker Beechcraft Corp. The judge said that the Bankruptcy Code prohibits him from approving the plan for the Hawker Beechcraft Corp. subsidiary because, even though the equity is worth nothing, the equity holders would technically be "retaining" their interests. The company said that it hopes to make changes that satisfy the judge by next week.
