CHC Group emerges from Chapter 11

Helicopter operator CHC Group has concluded its financial restructuring and emerged from Chapter 11 as its court-confirmed plan of reorganization went into effect on March 24, 2017.

CHC Group 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 company’s operations have been significantly affected by the dramatic decline in oil prices since their peak in 2014 and general uncertainty in the energy market, leading to decreased customer demand and an increase in idle aircraft.

CHC said on Friday it completed its court-supervised financial restructuring process with the support of its creditors and stakeholders.

In conjunction with CHC’s emergence from its court-supervised financial restructuring process and pursuant to the plan, the company received $300 million in new capital from its existing creditors. The plan also provides the company 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.

Karl Fessenden, President and Chief Executive Officer: “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 recognized 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.”

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