SLB, the stated target by CHC to complete the process is 6 months. There is no official time limitation for reorganization, it takes as long as it takes, but everyone is keen for it to be completed due to the expense and hassle.
Some interesting reading in the filing.
http://www.kccllc.net/chc/document/1...05000000000044
The near-term returns include approximately;
16 Sikorsky S-76
18 Airbus AS332
16 Sikorsky S-92
20 Airbus H225
1 Airbus EC155
19 AgustaWestland AW139
Anyone calculated the current value of each model with these numbers hitting the marketplace in an already saturated and over-supplied market?
And some reality;
The process of rejecting the Leases is extremely complicated, particularly when rejecting and returning approximately 90 helicopters in a very short period of time. One of the difficult aspects of this process is addressing the standard practice in the helicopter industry of “pooling” of helicopter parts, including engines, across an operator’s helicopter fleet as well as with third-party MROs and such MROs’ customers’ helicopter fleets.
20. Requiring CHC to return with each helicopter the Original Equipment would be monumentally burdensome, expensive and disruptive to CHC’s business, inasmuch as this process would require CHC to ground and remove all affected helicopters from revenue generating operations much earlier than would otherwise be necessary in order to remove the then affixed engines, transport each removed engine to the location of the helicopter subject to the applicable lease, and replace each removed engine with the engine identified in the applicable lease, assuming such engine is even currently in CHC’s possession as part of CHC’s engine pool. Thus, the operations and maintenance schedules for each affected helicopter would be disrupted, thereby adding to the complexity, burden, expense and loss of revenue. In addition, with respect to any Original Equipment installed on a helicopter that is no longer in CHC’s fleet or is now part of an MRO’s engine pool, it may not be possible for CHC to reacquire such Original Equipment to return to the applicable Lessor, since such engine may be installed and operating in the fleet of another operator and title to such engine would have been conveyed by an original equipment manufacturer (“OEM”) or MRO, as the case may be, to such operator.
The burden, expense and disruption to CHC’s business and fleet operations would be multiplied significantly given that 44 helicopters are being returned as part of this motion and an additional approximately 45 helicopters are expected to be returned in the very near term, with potentially additional helicopters to be surrendered and returned in the medium term as CHC continues to review its fleet needs.
It is worth reading the filing if you still think that the process is simple or that the return of the aircraft is easy or straightforward, look where they are located, and that in short order they will not be maintained or insured and they will be charged rent for continued storage. CHC in return is requesting relief from the original delivered engine configuration by Serial Number, perhaps not unreasonable, but subject to a response from the individual lessors. There are always two sides to every story.
Unbelievable amount of work to be undertaken there, just from the sheer numbers of aircraft and the varied locations around he globe. Took a huge amount of work to build and will take an immense amount to deconstruct.