I think that CHC has imploded.
The New York Stock Exchange now values CHC at 10% of what it did one year ago. The value one year ago was already a fraction of what FR paid for the Company.
The new private equity investors CD&R injected 500m USD into the company in exchange for preferred shares (that means they get paid first). The existing shareholders quite rightly rejected a call for them to put more money in through a rights issue.
The loses per share are completely unsustainable and the CD&R money was a short term lifeline only. As professional investors, I cannot believe that they will put any more money into this.
In my opinion that leaves two options:
To file for bankruptcy protection while they restructure and await market improvements.
To asset strip the profitable elements and sell them before winding up the Company.
I don't believe that 'do nothing' is an option here. We all know that CHC have lost a lot of business recently and if you were placing a long term helicopter contract today, how secure would you feel awarding it to CHC?