I think there are some very interesting revelations going to become apparent in the share structure for the secured and unsecured creditors, but I'll wait until the actual filing before I comment further.
I think the actions of the Lessors will become apparent once the full filing is complete. I am concerned that some lessors may fail and also that there could be a apocalyptic blood bath pulling other operators into default if the 225 issue isn't resolved very, very, rapidly. Every company jumped into the leasing strategy to such a degree that the current and continuing state of the O&G business could result in a perfect storm that causes the entire business to implode.
I certainly agree with many of the comments regarding the ownership and past management, but each corporation is an insular entity. This is not the first bankruptcy in the FR portfolio.
Talking to various colleagues, CHC were indeed doing business with companies that directly competed with Heli-One. Most were extremely sceptical, as this was a common strategy when your credit was maxed out, Evergreen were notorious for this and look what ultimately happened to them!
Talking of Evergreen, I would say that Erickson is on the verge of a Chapter 11 filing in the immediate future, based on the last financials last week. Similar financial situation and similar money sources.
When I was researching some background information a few weeks ago, I stumbled across a very interesting bit of information regarding the investor lawsuits into missing information from the IPO prospectus at both Erickson and CHC. Both lawsuits were initiated by employees that lost their investments! I'll let you reach your own conclusions!