CHC Group emerges from court-supervised restructuring
CHC Group has announced that it has successfully concluded its financial restructuring and emerged from the Chapter 11 bankruptcy process.
CHC Group has announced that it has successfully concluded its financial restructuring and emerged from the Chapter 11 bankruptcy process as its court-confirmed Plan of Reorganization went into effect on 24 March.
A statement from the firm said: “With the support of its creditors and stakeholders, CHC completed its court-supervised financial restructuring process and emerged as a significantly stronger, better-capitalised company. CHC’s competitive financial and operating structure will allow the company to capitalise on its legacy of innovation and invest in and grow the business.”
CHC said that in conjunction with its emergence from the court-supervised financial restructuring process and pursuant to the plan, it received $300 million in new capital from its existing creditors. The plan also provides the firm with terms for restructured aircraft leases and the option for additional asset-based financing commitments of $150 million from The Milestone Aviation Group and its affiliates.
Karl Fessenden, CHC’s president and CEO, said: “This is a pivotal moment in CHC’s history. Today marks a new beginning for CHC as we re-emerge as an economically robust and agile competitor in the global helicopter services market. Although proceeding with a restructuring is not a decision any company would take lightly, we recognised that, if we approached this process in the right way, we could transform CHC as well as change the shape of the industry moving forward. This process has allowed us to help secure CHC’s long-term health, and create a streamlined, highly competitive cost structure while establishing a fleet of aircraft better aligned with our customers’ businesses. All of this constructed on the bedrock of CHC – our commitment to maintaining the highest global standards in the industry for safety.”
CHC operates helicopters for oil and gas industry transport, search and rescue and EMS contracts around the world.