Judge Stuart Bernstein of the U.S. Bankruptcy Court for the Southern District of New York on Friday approved the Chapter 11 reorganization plan for Hawker Beechcraft Inc. except for a technical matter for one of its subsidiaries.

The court approved the company’s agreement with the Pension Benefit Guaranty Corp. and the International Association of Machinists to address its pension plan.

The company filed for bankruptcy protection in May and talks with a Chinese company to sell all of its assets for $1.8 billion collapsed.

The Wichita, Kan.-based plane maker plans to emerge as a stand-alone company that will make propeller driven aircraft. It is shedding its jet business and will be renamed Beechcraft Corp.

The company employs about 170 at its Little Rock completions center, which finishes jets to customer specifications.

Business, Pages 32 on 02/02/2013