CHC Group to restructure under Chapter 11 bankruptcy protection

CHC Group announced on 5 May that the company and a number of its subsidiaries had filed voluntary petitions for relief under Chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Texas. The firm said the move was made to ‘facilitate the restructuring of its balance sheet and fleet’, and to ‘position the company for long-term success’.

CHC Group, whose missions include providing SAR, HEMS and offshore transport around the world, said it expects the reorganisation to strengthen its financial position by reducing long-term debt and enhancing financial flexibility, while allowing it to manage and operate its fleet of aircraft. The company asserted that day-to-day operations will continue without interruption throughout the court-supervised restructuring process.

Karl Fessenden, president and CEO of CHC group, stated: “CHC continues to be a strong company operationally and we remain fully committed to delivering safe and reliable service to our customers. Importantly, normal business operations will continue. The step we have taken today provides an orderly path to enhance our financial flexibility and establish a competitive capital and operating structure that will allow us to invest in and grow CHC’s business over the long term. We remain committed to maintaining our position as a world class helicopter service provider.”

The firm said that its operations had been affected by a decline in oil prices and uncertainty in the energy market, which have led to decreased customer demand and an increase in idle aircraft.