CHC Group (CHC) announced that it has successfully concluded its financial restructuring and emerged from Chapter 11 as its court-confirmed Plan of Reorganization (the plan) went into effect on March 24, 2017.
With the support of its creditors and stakeholders, CHC completed its court-supervised financial restructuring process and emerged as a significantly stronger, better-capitalized company. CHC’s competitive financial and operating structure will allow the company to capitalize on its legacy of innovation and invest in and grow the business.
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 Milestone Aviation Group Limited and its affiliates.
“This is a pivotal moment in CHC’s history,” said Karl Fessenden, president and chief executive officer. “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.
“We would like to again thank all of our dedicated employees as well as our customers, suppliers and other business partners for their support throughout this process,” continued Fessenden. “We look forward to entering a new chapter for our company and being an even better partner as we continue these relationships for many years to come.”
CHC’s plan and disclosure statement as well as other information related to the restructuring proceedings are available here.
