Hawker Beechcraft argues the court should find that KEIP “constitutes a reasonable exercise of the debtors’ business judgment,” particularly since the senior leadership team must prepare potential paths for the company.

These include either sale of the company or preparation to move the company forward as a standalone business as outlined under the company’s preliminary reorganization plan filed in late June – all the while managing day-to-day operations.

The company argues the court should conclude that the senior leadership team members “are indispensable to the debtors’ efforts to have the business perform to its full potential over the next few months, while at the same time driving the successful implementation of the standalone transaction or the third-party transaction.”