Hey TM, we cross paths again on the same topic!
I agree, CHC is a cashflow business and at the moment is cashflow negative. Selling those assets represents 2 things:
1. When CD&R bought CHC a big deal was made that a good chunk of their $600m investment would be to buy out some leases to make it easier for CHC to work in 'complex' jurisdictions where the traditional leasing firms and banks do not like to let their ac go. This plan appears to have gone up in smoke.
2. CD&R have seen their stock investment they made to First Reserve get basically set on fire (bought in at $8 a share ish) so they throw 1. above out of the window to start making their money back any way they can. Fire sale is fine with them.
Surely it's only a matter of time before they sell Heli One? That's a business worth something to someone.
Edited to add - I wouldn't bet on stock price can only go up... Funny that 2x PE firms have tried to work CHC and failed in last few years. I thought these people were best and brightest?! It's a who's who of the best universities on earth and I would trust not one of them to be any good running CHC...
http://www.cdr-inc.com/professionals/partners.php