CHC Group has field for voluntary chapter 11 bankruptcy protection to facilitate restructuring and position company for long-term success.
The Group, parent company of CHC Helicopter, said it expects day-to-day operations to continue without interruption throughout court-supervised restructuring process.
“Like many companies in the oil and gas industry, CHC’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, which has led to decreased customer demand and an increase in idle aircraft,” the company said in a statement.
“Despite significant efforts to reduce costs, these factors, coupled with CHC’s debt and aircraft lease obligations, resulted in the company’s decision to engage advisors to assist in evaluating strategic alternatives to improve its capital structure,” it added.
The company said the reorganisation is aimed at strengthening CHC’s financial position by reducing long-term debt and enhancing financial flexibility while allowing the it to manage and operate its fleet of aircraft.
CHC said it expects to maintain sufficient liquidity throughout the restructuring process to maintain its continuing business operations.
“We fully expect service to customers will continue uninterrupted throughout this process and we will remain focused on providing our customers with the safe, compliant and reliable service they have come to expect from CHC,” the company stated on its website.
The helicopter firm filed voluntary petitions for relief under chapter 11 of U.S. Bankruptcy code in bankruptcy court for northern district of Texas. Chapter 11 does not mean that CHC is liquidating or going out of business with the company stating it will continue to provide services without interruption.
CHC Helicopter provides mission critical flight services to the North Sea oil and gas industry. It owns the helicopter that crashed last Friday near Bergen in Norway, killing all 13 people on board.
Karl Fessenden, President and Chief Executive Officer: “CHC continues to be a strong company operationally and we remain fully committed to delivering safe and reliable service to our customers.
“Importantly, normal business operations will continue. The step we have taken today provides an orderly path to enhance our financial flexibility and establish a
competitive capital and operating structure that will allow us to invest in and grow CHC’s business over the long-term.”
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