Hawker Beechcraft Inc, the aircraft manufacturer owned by Goldman Sachs’ private equity arm and Onex Corp , is preparing to file for bankruptcy protection in the next several weeks, according to people familiar with the matter.

Hawker, which was bought in 2007 for $3.3 billion by the private equity firms, is negotiating a prearranged bankruptcy with its largest lenders, which include Centerbridge Partners, Angelo Gordon and Capital Research & Management, the sources said.

Hawker and Onex declined to comment. Goldman Sachs and the lenders were not immediately available for comment.

Centerbridge is the biggest lender, holding as much as half of Hawker’s term loans, the sources said.

These lenders would also likely provide debtor-in-possession (DIP) financing to allow Hawker to continue to operate in bankruptcy, the sources said. One of the sources said the DIP financing is currently expected to be less than $500 million, but cautioned that the number has not been finalized and could change.

SOURCE: REUTERS