Erickson Files Chapter 11, Expects to File Reorganization Plan
NOV 10, 2016 - 6:34 am
Erickson and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division.
During the Chapter 11 process, Erickson will operate in the ordinary course of business.
The company expects to file a consensual plan of reorganization with the support of its major creditor constituencies within the first 50 days of the bankruptcy case, which the company anticipates will dramatically reduce its total indebtedness and allow it to exit bankruptcy with a stronger balance sheet in early 2017.
Concurrent with its Chapter 11 filing, Erickson has filed certain customary first day motions, including a new debtor-in-possession financing from its first lien lenders and certain of its second lien bondholders, with the court to ensure a smooth transition into Chapter 11. Pending court approval, the first day motions will allow the company to operate in the ordinary course and maintain its critical customer and supplier relationships.
“Unfortunately, Erickson is not immune to the numerous business challenges currently facing the helicopter industry which have placed downward pressure on operating results and asset values,” said President and CEO Jeff Roberts. “Operational integrity and safety continue to be our top priority, and this restructuring will in no way interfere with our performance and commitment to customer satisfaction. We have examined a number of alternatives and are convinced that a formal restructuring is the most effective path forward. We anticipate a controlled process that better positions us to serve our customers. We appreciate the work of our largest creditors, board, investors and employees who are committed to transparent and timely communications with our customers, prospects, vendors, suppliers, partners and key regulatory agencies.”
Erickson is a global provider of aviation services and operates, maintains and manufactures utility aircraft to safely transport and place people and cargo around the world.
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