CHC Group to emerge from Chapter 11 ‘in the next few weeks’
Helicopter operator CHC Group has been given confirmation for its financial restructuring plan by a court. The company hopes to complete it and emerge from Chapter 11 ‘in the next few weeks.’
CHC said on Sunday that the United States Bankruptcy Court for the Northern District of Texas confirmed the company’s plan of reorganization and signed a confirmation order to that effect.
The company added that it would emerge from Chapter 11 after all the conditions from the plan are satisfied.
To remind, CHC and certain of its wholly-owned subsidiaries filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in May 2016.
The filing came only days after one of the company’s helicopters on its way from Statoil’s Gullfaks B platform crashed near Bergen, killing eleven offshore workers and two pilots.
Under the terms of the plan announced, a recapitalization of CHC will be completed via $300 million in new capital from certain existing creditors. Also, additional funds will be raised through terms for restructured aircraft leases and the option for additional asset-based financing commitments of $150 million from The Milestone Aviation Group Limited and its affiliates. In addition, under the Plan, CHC’s liabilities will be reduced and its debt restructured.
Karl Fessenden, President and CEO, said: “We are very pleased with the court’s approval of our plan, which is the final legal step in our financial restructuring process.
“Our competitive financial and operating structure will allow us to capitalize on our legacy of innovation and invest in and grow CHC’s business in the years to come. We have also been successful, by working with our various fleet providers, to renew our fleet to the correct mix and number of aircraft to best meet our customers’ needs.”