Hawker Beechcraft execs seek $5M amid bankruptcy, THE BAIN CAPITAL VERSION.

  1. You have chosen to ignore posts from topaz978. Show topaz978's posts

    Hawker Beechcraft execs seek $5M amid bankruptcy, THE BAIN CAPITAL VERSION.

    How do you buy a company and get fees and bonuses at the same time you kill the pension holdback and get a paycheck. Hire Bain capital. They skim a fee (quite good enough for a 'retired retroactivly' whole owner of the stock) and get your books in order(kill the labor contracts).
    So all is good now. This is good for some. But not the folk who are trained to build aircraft. Retirement is toast and the buisness wants a chinese source for parts. Technically it is not out sourceing if you go into bankruptcy. Just check BAIN CAPITALS record. So the feds (thats you and me) pickup the PENSION GARUNTEE part of this and the CONVERSION  capital specialist gets a big fee. So we do not need to regulate the legal buisness oportunities that result in TAXPAYER BUYOUTS AND FEES.
     
  2. You have chosen to ignore posts from undead. Show undead's posts

    Re: Hawker Beechcraft execs seek $5M amid bankruptcy, THE BAIN CAPITAL VERSION.

     You didn't bother to read the other thread, did you.
     What's the name of this supposed aircraft company? How long has it been in business. How bad were they doing at the time they asked Bain for help?
     
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  4. You have chosen to ignore posts from topaz978. Show topaz978's posts

    Re: Hawker Beechcraft execs seek $5M amid bankruptcy, THE BAIN CAPITAL VERSION.

    First I did not see any "other thread" Second, Beechcraft is a long established company. The merger with Hawker gained them some time due to really difficult private aircraft sales in the late seventies through RR's depression. They had a model that was called back by the FAA and construction of new models was made nearly impossible by Ronald Reagan administration changing the rules for new aircraft testing.
    I actually never said Bain did this job. Just how you take a company through structured bankruptcy, kill contracts, force the pension benefit guarantee Co (ie the feds) to suck up the pension responsibility and then you can spend the balance of the assets. It is an oldy but tried and true. It happens all the time.

    In Response to Re: Hawker Beechcraft execs seek $5M amid bankruptcy, THE BAIN CAPITAL VERSION.:
    [QUOTE] You didn't bother to read the other thread, did you.  What's the name of this supposed aircraft company? How long has it been in business. How bad were they doing at the time they asked Bain for help?
    Posted by undead[/QUOTE]
     
  5. You have chosen to ignore posts from undead. Show undead's posts

    Re: Hawker Beechcraft execs seek $5M amid bankruptcy, THE BAIN CAPITAL VERSION.

     You specifically cited Bain in your first post. Now you say you aren't talking solely about Bain.

     Venture companies are hired because they can save your company by loaning you the kind of money no bank can ever hope to.
     The price, however, paid by the company being bailed out is nothing short of a takeover. Bain would control the company because of the conditions of the loan, specifically in that they want 3 x the amount of the loan back.

     EX: Bain loans you 1 million. It wants 3 million back. Your plan, even if it was a good one, probably won't be pulling in that kind of cash. They know how to make that kind of cash, so they take over the company to ensure you can make that kind of cash.
     Upon repayment of the loan, they give you back control of your company. 
     
     If what you said about Beechcraft is true, then I'd say that they were very foolish to try to bail themselves out via a venture company. It sounds like they had a restructuring plan when they originally agreed but when Reagan changed the rules, that went out the window, the company controlling knew they couldn't make the money back, and liquidated it right then and there to limit their losses.
     It is unfortunate. Who could've seen the events leading up to it, but nonetheless, when it comes to business, the old proverb of only the strong survive is still alive and well.
     
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  7. You have chosen to ignore posts from topaz978. Show topaz978's posts

    Re: Hawker Beechcraft execs seek $5M amid bankruptcy, THE BAIN CAPITAL VERSION.

    Well HB actually never got the money. The parent company did. The aircraft built was the collateral on the loan. Those got or will get built. It was the executives getting a nice pat on the back that BURNS me. The bankruptcy is a way to close the intrest due, loans, and capital in the company. The holding parent corp is still on the hook for federal contracts as those are not normally discharged in bankruptcy. Those contracts will either be satified when orders are cancelled and the remainder given back or the product is delivered. Really the contractors for military aircraft rarely get a golden parachute ON TOP of the non market inflated prices they charge on the hardware.
     Think 200$ wrenches for helicopters you can buy at HD for 7$. Same size just bought through the contract with the manufacturer per agreement to source the repair tools. Can we get 10% reduction in cost out of the military by not stocking wasteful wharehouses of degraded parts and overpriced tools? Maybe not. But 5% currently runs at 60 billion bucks. That would be a nice reduction PER YEAR. Thats more than 600 billion over ten years.
     
  8. You have chosen to ignore posts from AppDev. Show AppDev's posts

    No tickee, no washee.

    This thread started on a odd note: Bain ripped off Hawker. Maybe so, but the commenting reader is pretty clearly not a Bain or a Hawker exec. So where's the document that lays out the facts?

    A later post seems to claim Bain's agreement with Hawker called for three-to-one repayment on a loan. Unusual information to reach the public--normally very closely held. Where's the document that lays out the facts?

    No tickee, no washee.

     

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