PPRuNe Forums - View Single Post - What's happening in CHC?
View Single Post
Old 28th Apr 2015, 12:46
  #83 (permalink)  
Pittsextra
 
Join Date: Jan 2012
Location: UK
Posts: 1,099
The fun never ends.....

The plaintiff claims that CHC Group Ltd allegedly failed to tell potential investors that one of its largest customers stopped making payments to CHC Group Ltd months before it filed a prospectus for the companys January 2014 initial public offering (IPO).
On July 10, 2014, CHC Group Ltd announced that starting in April of 2013, Petrobras stopped making payments on contracts to CHC Group and other operators of 225 [helicopters] in Brazil until overwater flights with those aircraft resumed.
The plaintiff alleges that the offering materials for the IPO contained false and/or misleading statements and omissions of material fact and therefore misled investors. More specifically, the plaintiff says that a crash of one of CHC Group Ltds aircraft in October 2012 led to a grounding of certain models of medium- and heavy-weight helicopters and that one of CHC Group Ltds biggest customers, Petroleo Brasileiro SA, or Petrobras, suspended its payments to CHC Group Ltd as a result of the grounding, but CHC Group Ltd made no mention of this in its prospectus.
The plaintiff says that, while the accident is mentioned in CHC Group Ltds filing under the Recent Developments section and the filings conclude that it is too early to determine the extent of the impact of the accident on our results of operations or financial condition based on information currently available, CHC Group Ltd allegedly knew by the time it was filing for its offering how significant the impact would be. The plaintiff says that it was not too early for CHC Group Ltd to estimate the impact of the accident, as payments from Petrobras ceased in April 2013, almost seven months before the Registration Statement was filed.
Pittsextra is offline