CHC Helicopter Completes Full Restructuring – Emerges from Chapter 11 Proceedings as Stronger Company

Karl Fessenden, CEO of CHC Helicopter remains positive on the continued success of the company as it emerges from Chapter 11 proceedings.

Global operator CHC Helicopter continues its push as it rebounds from industry downturn that forced Chapter 11 reorganization.

CHC Helicopter, the global powerhouse that recently felt the squeeze of the downturn in the oil and gas industry worldwide downturn thanks to oil prices hitting an all time low price per barrel, completed its final step of reemergence today after successful conclusion of its financial restructuring, which will see the company emerge fully from Chapter 11 bankruptcy proceedings. The company’s court-confirmed Plan of Reorganization becomes effective as of March 24, 2017. The company filed shortly after a fatal accident in Norway that is still under investigation that led to the loss of thirteen passengers and crew in an incident still under investigation by Norwegian authorities. The crash is suspected to be attributed to a fault within an OEM gear that would have been impossible to detect without the use of infra red scans and complete disassembly of the gearbox believed responsible according to initial reports made by Norwegian investigators in the weeks following the crash.

A search and rescue vessel patrols off the island of Turoey, near Bergen, Norway, as emergency workers attend the scene of the crashed CHC helicopter a helicopter that claimed the life of 13 people aboard, Friday April 29, 2016. Photo by Rune Nielsen / NTB scanpix via AP
A search and rescue vessel patrols off the island of Turoey, near Bergen, Norway, as emergency workers attend the scene of the crashed CHC helicopter a helicopter that claimed the life of 13 people aboard, Friday April 29, 2016. Photo by Rune Nielsen / NTB scanpix via AP

CHC released the following statement regarding their release from Chapter 11 proceedings:

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 The Milestone Aviation Group Limited and its affiliates.

“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” said Karl Fessenden, CEO of CHC Helicopter.

Mr. Fessenden continued, “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. 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 at www.kccllc.net/chc.

Customers, suppliers and other stakeholders can find additional information about CHC’s reorganization at www.chcheli.com/restructuring.

While it remains to be seen what the company will look like from an outsider perspective, our talks with CHC staff about the impending reemergence during the 2017 Heli-Expo show were filled with optimism and excitement from current staff who are looking forward to life after bankruptcy and returning to “business as usual” and building the business into a much stronger and more successful company than before.

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