Hawker Beechcraft has been cleared to emerge from bankruptcy protection after 14 February as a restructured and smaller company.
The US bankruptcy court approved the company's reorganisation plan that sheds the Hawker identity and business jet production, Hawker Beechcraft says in a statement.
The re-named Beechcraft Corporation will focus on the turboprop and piston aircraft that it considers profitable and with "high growth potential".
Current Hawker Beechcraft chairman Bill Boisture will become chief executive of Beechcraft, replacing Steve Miller, who will remain as a senior advisor to the board.
The court also approved Hawker Beechcraft's plan to use JP Morgan Securities and Credit Suisse Securities as underwriters for a $600 million loan.