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The deal is also subject to regulatory approvals from the Chinese and U.S. officials. Bankruptcy court approval is also required. If the deal collapses, Hawker Beechcraft said it will proceed with its bankruptcy reorganization plan to emerge as a stand-alone company. Superior Aviation is 60 percent owned by Beijing Superior Aviation Technology Corp., Ltd, a closely held private entity, and 40 percent by Beijing E-Town International Investment & Development Corp., Ltd, a company controlled by the Beijing municipal government. Since its founding and highly leveraged 2007 purchase of Raytheon Aircraft, Hawker Beechcraft has carried a heavy debt burden, reporting total debt of $2.3 billion at the end of 2011, according to its annual statement to the Securities and Exchange Commission. Hawker Beechcraft said that the proposed combination of Hawker Beechcraft and Superior "will not require a financing condition." In December 2010, Hawker Beechcraft struck a deal with state and local officials to keep its aircraft operations and at least 4,000 jobs in Kansas until 2020 in exchange for $45 million in incentives. On Monday, the only comment from the Kan. Gov. Sam Brownback's office was a one-line response sent in an email: "The state is following the situation closely." Also monitoring the situation are city leaders in Wichita, who also issued a brief statement saying they would work diligently to protect the city's investment and aviation jobs. "At this time, the City is working to gain a better understanding of how the proposed acquisition may impact our community," Mayor Carl Brewer said. "We understand the financial challenges Hawker has faced and are optimistic this acquisition could preserve jobs and help Hawker avoid difficult financial decisions." Hawker Beechcraft traces its Kansas roots to Beech Aircraft Corp., a company founded by Walter and Olive Ann Beech that began making aircraft in the 1930s.
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