Bristow files for Chapter 11 Bankruptcy

[LesPretend]

In a press release issued after stock markets were closed for the week, Houston, Texas based Bristow group announced Saturday, May 11, 2019 that the Company has voluntarily filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas.

The Chapter 11 filing came as little surprise to industry insiders who anticipated the company would soon announce a chapter 11 filing. Bristow’s financial woes became evident after a $560 Million USD merger with Columbia Helicopters announced on November 11, 2018 collapsed in February of 2019.

[Non-Driver]

HOUSTON, May 11, 2019 /PRNewswire/ -- Bristow Group Inc. (NYSE: BRS) ("Bristow" or the "Company") today announced that the Company has voluntarily filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas (the "Bankruptcy Court" or "the Court"). Bristow intends to use the proceedings to restructure and strengthen its balance sheet and achieve a more sustainable debt profile, while continuing to provide safe, reliable and professional industrial aviation services to its global clients well into the future.

All of Bristow's businesses are operating in the ordinary course and are anticipated to continue to do so for the duration of the Chapter 11 process. The Chapter 11 filings pertain to certain of Bristow's legal entities in the United States and two of its Cayman Islands subsidiaries.

Bristow's other non-U.S. entities, including those holding Bristow's non-U.S. air operating certificates ("AOCs"), are not included in the Chapter 11 filings.

L. Don Miller, President and Chief Executive Officer of Bristow Group Inc., said, "After working diligently with our advisors on a thorough review of strategic financial alternatives, the Board of Directors and management concluded that the best path forward for Bristow and its stakeholders is to seek Chapter 11 protection. This process will allow us to strengthen our balance sheet, achieve a lower and more sustainable debt level and emerge as a stronger company. We have the support of the overwhelming majority of our parent company senior secured noteholders, with whom we have entered into a Restructuring Support Agreement that will help to de-lever our balance sheet, and we are actively working with other important stakeholders as we enter this process."

Mr. Miller continued, "Bristow remains steadfast in its commitment to safety and providing exceptional client service during the Chapter 11 process. For clients, it is business as usual at Bristow, and our talented team will stay focused on delivering safe, reliable and professional services around the globe throughout the process and beyond. We expect to execute a prompt and efficient reorganization, and to emerge from this restructuring process as a stronger company that is an even better business partner, employer and trusted service provider.

"We deeply appreciate the hard work of our dedicated employees and their commitment to each other, our valued clients and our passengers. We are also grateful for the many years of support by our suppliers and business partners, and we look forward to continuing to work with them as we move through this process and beyond."

To ensure its ability to continue operating in the ordinary course of business, Bristow has filed customary motions with the Bankruptcy Court seeking a variety of "first-day" relief for the filing entities, including authority to pay employee wages and benefits, vendors and suppliers in the ordinary course for goods and services provided after the Petition Date.

In addition to executing the Restructuring Support Agreement (the "RSA") with the Company, certain senior secured noteholders made a $75 million term loan to the Company prior to the Court filing, and provided a commitment for a further $75 million in debtor-in-possession ("DIP") financing that would be available upon Court approval. The financing package provides Bristow with capital that enables the Company to fund its global operations and make continued investments in safety and reliability during the Chapter 11 reorganization proceedings.

The following eight entities are included in the filing: Bristow Group Inc., BHNA Holdings Inc., Bristow Alaska Inc., Bristow Helicopters Inc., Bristow U.S. Leasing LLC, Bristow U.S. LLC, BriLog Leasing Ltd. and Bristow Equipment Leasing Ltd.

Additional information regarding Bristow's Chapter 11 filing will be available at http://www.bristowgroup.com/restructuring (https://c212.net/c/link/?t=0&l=en&o=2464088-1&h=4286163018&u=http%3A%2F%2Fwww.bristowgroup.com%2Frestructuring&a=http%3A%2F%2Fwww.bristowgroup.com%2Frestructuring). Court filings and information about the claims process are available at https://cases.primeclerk.com/Bristow (https://c212.net/c/link/?t=0&l=en&o=2464088-1&h=248246123&u=https%3A%2F%2Fcases.primeclerk.com%2FBristow&a=https%3A%2F%2Fcases.primeclerk.com%2FBristow). Questions should be directed to the Company's claims agent, Prime Clerk, by email to [email protected] or by phone at +1 844-627-6967 (toll free) or +1 347-292-3534 (toll).

Baker Botts L.L.P. and Wachtell, Lipton, Rosen & Katz are serving as the Company's legal counsel and Alvarez & Marsal is serving as the Company's restructuring advisor. Houlihan Lokey is serving as financial advisor to the Company.

Davis Polk & Wardwell LLP is serving as legal counsel and PJT Partners is serving as financial advisor to the senior secured noteholders.

[workhorse22]

Bristow's other non-U.S. entities, including those holding Bristow's non-U.S. air operating certificates ("AOCs"), are not included in the Chapter 11 filings.

What about the aircraft operated outside US but owned by one of the affected entities? Example is several aircraft I could find to be affected in Bristow Norway.

Bristow U.S. LLC: LN-ONR, LN-ONS, LN-ONW, LN-OND, LN-ONJ (EC225) and LN-ONK (EC225)
Bristow Equipment Leasing Ltd.: LN-ONT, LN-ONN, LN-ONO, LN-ONP, LN-ONM, LN-ONY, and LN-OIB. (all S92).

[Watson1963]

Copy of the GVIC's turnaround plan, and their letters to the Bristow board, are here:
https://www.gvi-corp.com/global-value-investment-corp-issues-open-letter-to-bristow-board-requests-meeting-to-present-operational-turnaround-plan/

Edit: all for nothing, now that they have filed for Ch11. Shocking. Hopes are with those on the front line.
BTW Eastern Airways accounts are at https://beta.companieshouse.gov.uk/search?q=Eastern+airways .. the most recent ones are to 31 March 2018, so a bit out of date

[OffshoreHeli-Mgr]

Bristow has just filed for chapter 11 bankruptcy.
Chapter 11 allows a company to reorganize and emerge as a new company usually with less debt and costly contracts get cancelled.

[Hompy]

Sounds Great!

[gulliBell]

How predictable. I guess Chapter 11 means the senior management now has to stop paying themselves generous cash performance bonuses.

[500e]

Now there's surprise

[nomorehelosforme]

Seems timing is perfect, Miller and Co take a big draw/bonus Thursday then announce it really has gone tits up on a weekend. Yes the Receivers, Attorneys and administrators will all grab what's left in the pot, while 100's of employees etc wonder what is happening.

Miller and Co, hope you are proud of what you have done, sitting back checking your bank balance..... ill gotten gains in my book!

[Watson1963]

workhorse22, according to a filed document, these entities have filed for Ch11...the 2 you mention are there...

Bristow Group, Inc.
BHNA Holdings Inc.
Bristow Alaska Inc.
Bristow Helicopters Inc.
Bristow U.S. Leasing LLC
Bristow U.S. LLC
BriLog Leasing Ltd. (Cayman)
Bristow Equipment Leasing Ltd. (Cayman)

This is from the case docket at:
https://cases.primeclerk.com/Bristow/Home-DocketInfo
...the finance people must have been busy today, because there was only one document there a couple of hours ago.

[workhorse22]

workhorse22, according to a filed document, these entities have filed for Ch11...the 2 you mention are there....

Yes they are, undoubtably there will be consequences for all companies in the Bristow group regardless of the specific companies directly involved with the Ch11 filing.
Approx. half of the fleet operated in norway are owned by one of the affected entities.

[SASless]

How predictable. I guess Chapter 11 means the senior management now has to stop paying themselves generous cash performance bonuses.



If I was the Judge they would be taking pay cuts and returning all the bonuses....or they would play hell getting my approval on their Plan!

[gulliBell]

Can the Judge decree remuneration levels for company executives under Chapter 11?

[Watson1963]

Some info from para 39 onwards in this pdf where they're petitioning to continue paying staff:
​​​​​https://cases.primeclerk.com/Bristow/Home-DownloadPDF?id1=MTExNDk2OA==&id2=0

If the link doesn't work, it's document 15 in the case file https://cases.primeclerk.com/Bristow/Home-DocketInfo

[bombdoorsopen]

Just after the management paid themselves retaining payments....

[Mitchaa]

The bonus payments the day before filing should be classified as theft.

Crazy world we live in.

[crunchingnumbers]

It will be interesting to see the common shareholders response to the fact that Bristow neatly carved out performing assets (Trinidad, UK etc etc), even though some of these operations were undoubtedly established with the help of US shareholder equity.

Wiping out those shareholders like GVIC and others with long term positions to satisfy secured creditors and bond holders, whilst trying to attract new investment under the guise of 'new' shares will not likely happen quietly. I'd be waiting for my class action paperwork in the post :).

[pax britanica]

Having worked for a company that went through this process in Chapter 11 a supervising judge has to approve all significant expenditure. Sometimes there is also a creditor committee which can stop or approve things;the judge then agrees with either the company or the creditors if they are not aligned. .

The utterly dishonest practice of paying the incompetent management wh. There is of course an argument for retention payments for key staff , in this case the crews and key ops staff , you dont want them to leave because no one is going to join a lame duck but to pay the management thats just a bad joke ran the company into bankruptcy to pay themselves retention bonuses is by any normal standards criminal but its just another perk of the higher corporate world

[Self loading bear]

It will be interesting to see the common shareholders response to the fact that Bristow neatly carved out performing assets (Trinidad, UK etc etc), even though some of these operations were undoubtedly established with the help of US shareholder equity.

Wiping out those shareholders like GVIC and others with long term positions to satisfy secured creditors and bond holders, whilst trying to attract new investment under the guise of 'new' shares will not likely happen quietly. I'd be waiting for my class action paperwork in the post :).

If I have understood Ch11 correctly the common shareholders have not much the say.
Only the holders of secured notes and loans have something to say.
I think GCIV was therefore very late (2 or more years) with their letter to the board and alternatieve plan.
Class action suit is of course a possibility. (to give some other lawyers a piece of the cake)

[Watson1963]

One of you guys with finance knowledge might know the answer to this.

I've been wondering what happens with the affiliate companies not directly covered by the Ch.11 .. where those affiliates are making a loss and have said in filings that they need to rely on the financial support of the parent co to continue?
​​​​​​
​​​Out of Bristow's UK based companies, both BHL and Eastern posted losses in the year ending March 2018. I didn't check any others.
https://beta.companieshouse.gov.uk/search?q=Bristow+helicopters

[crunchingnumbers]

The Bristow Trinidad operation was set up and running very profitably decades before any part of the company was US owned and run.


Yes 'established' is not fair to say (I know some of the people - good people on the line in Trinidad), but replacements of the old 212's and 412's didn't happen without help is what I' meant.

[Self loading bear]

The picture may be different for companies making a loss complete on their own (Eastern?) of have to pay substantial leasing sums to one of the US companies (BHL?)

[PlasticCabDriver]

Are there any ramifications to a company or its directors for entering Chapter 11? It seems like no more than a Get Out Of Jail Free card. Run a company badly, extract as much out of it as you can, then when it all goes wrong, cry “Chapter 11!!”, bin off all those tricky contracts and debt you don’t want, and just start again.

I’m sure there’s more to it than that, but is there any downside?

[Watson1963]

SLB - exactly what I was thinking.

To the end of March 2018, BHL posted a UK loss of £46.5m and had a net value of minus £43m (shareholders deficit) on the balance sheet, at that point in time.

Same period - Eastern posted a loss of £6.7m, but at least had a balance sheet value of £4.1m.

Does part of the Ch.11 allow for payments/support to continue being made to loss making subsidiaries, until the whole group of businesses have been reviewed?

[Watson1963]

Mitchaa .. thanks for the info. More tough times ahead :uhoh:

[jimf671]

Within Bristow Group, the value of BHL is kept artificially low and the expenses are driven artificially high by the leasing arrangements. I think Bristow Aircraft Leasing Ltd and Bristow Aviation Holdings Ltd, both Brit registered, are two of the mechanisms. If I was a financial officer at BHL, these are amongst the first suppliers I'd be talking to about trimming the outgoings!

Avia Quest Ltd was, until a few days ago, called Bristow Helicopters Leasing Ltd, but has changed its name, directors and persons with significant control during this critical period. A bit strange, but limited value involved and probably a single aircraft.

[Apate]

Within Bristow Group, the value of BHL is kept artificially low and the expenses are driven artificially high by the leasing arrangements. I think Bristow Aircraft Leasing Ltd and Bristow Aviation Holdings Ltd, both Brit registered, are two of the mechanisms. If I was a financial officer at BHL, these are amongst the first suppliers I'd be talking to about trimming the outgoings!

Avia Quest Ltd was, until a few days ago, called Bristow Helicopters Leasing Ltd, but has changed its name, directors and persons with significant control during this critical period. A bit strange, but limited value involved and probably a single aircraft.

Probably Bristow divesting itself of the Russian operation? Here's an extract from the Bristow website (now outdated):

Bristow Aviation has a 48.5% interest in Aviashelf Aviation Co. (“Aviashelf”), a Russian helicopter company. Additionally, Bristow owns 51% of two U.K. joint venture companies, Bristow Helicopters Leasing Ltd. and Sakhalin Bristow Air Services Ltd. These two U.K. companies lease aircraft to Aviashelf which holds the client contracts for Russian operations.

The major (only?) shareholder of the new Avia Quest Ltd is a Russian citizen who runs SAT Airlines, a Sakhalin based airline.

[PhilJ]

From an SEC filing, https://investtribune.com/bristow-group-inc-filed-8-k-on-may-13/

On May 10, 2019, BHL completed the sale of all of the shares of EAIL to Orient Industrial Holdings Limited (“OIHL”), an entity affiliated with Mr. Richard Lake, pursuant to a Sale and Purchase Agreement (the “EAIL Purchase Agreement”). Pursuant to the EAIL Purchase Agreement and related agreements, BHL contributed approximately £17.1 million to EAIL as working capital, OIHL acquired EAIL, BHL retained its controlling ownership of the shares in Humberside International Airport Limited that it previously held through EAIL and certain intercompany balances between BHL and EAIL were written off. As a result of the transaction, OIHL now owns and operates EAIL, which had previously operated as a separate unit within Bristow Group, and BHL maintains its controlling interest in Humberside Airport, from which BHL provides U.K. search and rescue services.

[Apate]

So Bristow have paid £17 million to Richard Lake (OIHL) so that he can take ownership of Eastern?

[Atlantic Explorer]

£17 million!? Wouldn’t have thought it was worth half of that.

RL will be laughing all the way to the bank!

[rotor-rooter]

All is not lost, you can still trade Bristow shares in the OTC market. BRSWQ

$ 0.0852 (-0.2009) -70.22% Volume: 12,874,974
Low: 0.081 High: 0.2028 Year Low: 0.081 Year High: 18.91

After Hours: $ 0.0852 0.00 0.00%May 14, 2019 4:55 PMEDTVolume: 4,355,335
USDOTC PINKDELAYED PRICEMARKET CLOSEDMAY 14, 2019 3:59 PMEDT

https://stockhouse.com/companies/quote?symbol=brswq

[JulieAndrews]

Logic like that and one wonders why BHL is in the dwang??

[Autonomous Collectiv]

Bristow finally achieved Target Zero, that's what the company is worth and the dishonest managers that have run it into the ground have zero chance of ever being held accountable.

[thechopper]

To introduce COBI, amongst other things has obviously has worked great for the company as well.

[helihub]

both BHL and Eastern posted losses in the year ending March 2018

You are potentially reading too much into these accounts - there's only mileage in looking at a holding company accounts. Remember that some companies like Starbucks and Amazon show near-zero profits in UK by paying a "licence fee" to the US parent company "to use the company name in the UK" and that's not so easily visible from filed statutory accounts.

[John Eacott]

Bristow Helicopters Australia are seeking a HOO/Chief Pilot (https://www.seek.com.au/job/39132825?searchrequesttoken=51516382-fe03-4283-afa2-5d766beed439&type=standard) :hmm:

[nomorehelosforme]

Bristow Helicopters Australia are seeking a HOO/Chief Pilot (https://www.seek.com.au/job/39132825?searchrequesttoken=51516382-fe03-4283-afa2-5d766beed439&type=standard) https://www.pprune.org/images/smilies/yeees.gif

Having taken a brief look at the requirements, qualifications and expectations for this position I am of the conclusion that the current board of directors, CEO’s and whatever else they call themselves must be in need of more time to sit back and enjoy their ill gotten gains and try to off load all their responsibilities to one person who will probably end up as a scapegoat when there are no improvements.

Anyone fancy the position?

[GreenerGrass]

".....the current operational footprint in Australia."
It's a pretty small footprint.

[industry insider]

Its going to be a short term position.

Bristow has 4 aircraft remaining in Australia. 2x AW139 in Tooradin and 2x S-92 in Pt Hedland. The Hedland contract officially ends in September although may extend to December. S-92 LIMSAR and night standby will soon be taken over by Babcock 139s from Karratha which will lead to further pilot redundancies.

[Cabby]

https://www.marketwatch.com/press-release/bristow-secures-contract-with-bp-plc-2019-05-31

[DavidCg]

Have been trying to get my pension from Bristow's Staff Pension Scheme for two years. I left the company in 1977. They are now saying that they have no record of me ever working for them Is anyone else having the same problem??

[SASless]

I had similar concerns when I left Bristow....and cashed out my pension account....turns out to have been a wise move it seems.

[jimf671]

Bristow finally achieved Target Zero, ... ... .


There's got to be a way we can get a LIKE button on here surely!

[Same again]

I left the company in 1977

You left your pension sitting with Bristow for 40 years???

[industry insider]

I worked for Bristow from 80-97. Like SAS, I converted my pension to an actuary agreed lump sum and merged it with my Superannuation fund 15 years ago. The UK Tax authorities make it slightly complex.

[Saint Jack]

DavidCg - I left Bristow in 1979, when Iran went pear-shaped, and a little time later I received a letter (sorry, can't remember from who) telling me that my Bristow Pension account had been transferred to Prudential. The Prudential corresponding office was, and still is, at Lancing in Sussex. I receive my pension tax-free as I'm not resident in the UK. It might be worth dropping Prudential a line:
Prudential
Lancing
BN15 8GB
UK
Ms. Tracy Harris
Customer Service Director

By the way, about 15 years ago I received a (surprise) letter from the National Insurance Board of Trinidad and Tobago telling me that I had an outstanding balance in my pension fund and how would I like to receive it, in installments or a lump sum? This time I took the lump sum, I did two years in Trinidad with Bristow and this was the first indication I had about a pension there. Thank you Trinidad!

[DavidCg]

DavidCg - I left Bristow in 1979, when Iran went pear-shaped, and a little time later I received a letter (sorry, can't remember from who) telling me that my Bristow Pension account had been transferred to Prudential. The Prudential corresponding office was, and still is, at Lancing in Sussex. I receive my pension tax-free as I'm not resident in the UK. It might be worth dropping Prudential a line:
Prudential
Lancing
BN15 8GB
UK
Ms. Tracy Harris
Customer Service Director

By the way, about 15 years ago I received a (surprise) letter from the National Insurance Board of Trinidad and Tobago telling me that I had an outstanding balance in my pension fund and how would I like to receive it, in installments or a lump sum? This time I took the lump sum, I did two years in Trinidad with Bristow and this was the first indication I had about a pension there. Thank you Trinidad!

Thank you for that information Saint Jack. I left Iran in 1975 and went to Trinidad where I worked until I left the company in 1977. I received a single letter which (from memory) was sent either from the North of England or Edinborough, advising me of the balance in my pension account and my perhaps faulty memory remembers it being from an insurance company. I thought it was Pearl but maybe it was Prudential so thank you and I will certainly contact them.

[parabellum]

Bristow files for Chapter 11 Bankruptcy Have been trying to get my pension from Bristow's Staff Pension Scheme for two years. I left the company in 1977. They are now saying that they have no record of me ever working for them Is anyone else having the same problem??

The ATO should have evidence of your pension payments, surely?

[Tony Mabelis]

Have been trying to get my pension from Bristow's Staff Pension Scheme for two years. I left the company in 1977. They are now saying that they have no record of me ever working for them Is anyone else having the same problem??


Bristow sold off their (our) pensions to various insurance companies.
In my case, I initially called Legal and General who after a search said they had no record.
About 12 months later I received a letter, via HMRC? from the Prudential Insurance co who were actually looking for me!
I would give those two companies a call.
Don't get too excited about a Bristow pension, mine was for 12 years service, and it doesn't quite cover my annual council tax bill.
Good luck, it's out there somewhere.
Tony

[DavidCg]

Bristow sold off their (our) pensions to various insurance companies.
In my case, I initially called Legal and General who after a search said they had no record.
About 12 months later I received a letter, via HMRC? from the Prudential Insurance co who were actually looking for me!
I would give those two companies a call.
Don't get too excited about a Bristow pension, mine was for 12 years service, and it doesn't quite cover my annual council tax bill.
Good luck, it's out there somewhere.
Tony

Thanks Tony. It still strikes me that Bristow's are delinquent in their mandatory reporting requirements for pensions. I shall also try Legal and General and the HMRC although I was registered as non resident for tax purposes during my tie with the Company
David

[212man]

I thought Aeon dealt with the pensions?

[Democritus]

Yes, in the UK it's Aon, or to be more precise Aon Hewitt. They have been faultless in paying my Bristow Pension for the last 20 years.

Another avenue for folk to try... Contact Mike Ironside - he is The Secretary to the Trustee, Bristow Staff Pension Scheme, 11 Strand, London, WC2N 5HR. His email is [email protected] . I contacted him a couple of times with queries and he was very helpful. PSITL is, I think, Punter Southall Independent Trustee Services Ltd.

Aon have a Dedicated Scheme telephone number: 0345 266 9369 or write to: Trustees of the Bristow Staff Pension Scheme, Aon, PO Box 196, Huddersfield, HD 8 1EG.

Re Prudential, a little grey cell has just woken up to suggest to me that they held Bristow AVC contributions?

Good Luck!

[DavidCg]

Yes, in the UK it's Aon, or to be more precise Aon Hewitt. They have been faultless in paying my Bristow Pension for the last 20 years.

Another avenue for folk to try... Contact Mike Ironside - he is The Secretary to the Trustee, Bristow Staff Pension Scheme, 11 Strand, London, WC2N 5HR. His email is [email protected] . I contacted him a couple of times with queries and he was very helpful. PSITL is, I think, Punter Southall Independent Trustee Services Ltd.

Aon have a Dedicated Scheme telephone number: 0345 266 9369 or write to: Trustees of the Bristow Staff Pension Scheme, Aon, PO Box 196, Huddersfield, HD 8 1EG.

Re Prudential, a little grey cell has just woken up to suggest to me that they held Bristow AVC contributions?

Good Luck!

Thanks 212an and Democritus. I did call AON (The dedicated staff pension scheme) but because it was so long ago the records have been archived and the normal support people can't access them. So I had to write to the AON Scanning Group to request that they search the archives. After about three months, I had a reply from Prague to say that they can find no records. Seems that is now where that part of AON is located! I shall try Mike Ironside. Thanks for the information. I still think that they are in breach of pensions regulations which mandates that records are kept until the pensioner reaches 75 years of age.

[DavidCg]

Yes, in the UK it's Aon, or to be more precise Aon Hewitt. They have been faultless in paying my Bristow Pension for the last 20 years.

Another avenue for folk to try... Contact Mike Ironside - he is The Secretary to the Trustee, Bristow Staff Pension Scheme, 11 Strand, London, WC2N 5HR. His email is [email protected] . I contacted him a couple of times with queries and he was very helpful. PSITL is, I think, Punter Southall Independent Trustee Services Ltd.

Aon have a Dedicated Scheme telephone number: 0345 266 9369 or write to: Trustees of the Bristow Staff Pension Scheme, Aon, PO Box 196, Huddersfield, HD 8 1EG.

Re Prudential, a little grey cell has just woken up to suggest to me that they held Bristow AVC contributions?

Good Luck!

Hi Deocritus. Just an update. Mike Ironside left in February The person who has taken over the role is Stuart Southall. email [email protected]

[lowfat]

PK AirFinance moves to seize 24 helicopters from Bristow (https://www.flightglobal.com/news/articles/pk-airfinance-moves-to-seize-24-helicopters-from-bri-460284/)

Beleaguered Bristow Group is facing a challenge to its restructuring plans after loan provider PK AirFinance moved to repossess two dozen helicopters operated by various subsidiaries of the offshore transport specialist.

According to US bankruptcy court documents by GECAS-owned PK AirFinance on 9 August initiated the "enforcement action" related to the rotorcraft.

In all, 24 helicopters are security against loans totalling $230 million between Luxembourg firm PK AirFinance and Bristow Equipment Leasing (BELL), a Cayman Islands-based subsidiary of Bristow Group.

US-headquartered Bristow Group, and subsidiaries including BELL, entered Chapter 11 bankruptcy protection in May to deal with a crippling debt load.

PK AirFinance argues that BELL has missed loan payments and "has not cured all defaults, nor has it agreed to perform all future obligations" under the terms of the financing agreements.

Instead, as part of Bristow Group's financial restructuring under Chapter 11, BELL is proposing to cancel the debt secured by the helicopters and issue a new agreement relating to the aircraft.

Issuing the "demand for possession of aircraft" gives Bristow Group 10 days notice of the action.

The 24 helicopters comprise five Leonardo AW139s, five Sikorsky S-76Ds and 14 S-92s, operated by Bristow Group companies in Australia, Nigeria, Norway and the UK.

[twisted wrench]

This could be good news or bad news for Bristow. If the aircraft are sitting idle is good news to off load them but if they are on contracts could be bad news if they don´t have aircraft available to take there place.

[212man]

This could be good news or bad news for Bristow. If the aircraft are sitting idle is good news to off load them but if they are on contracts could be bad news if they don´t have aircraft available to take there place.

I don't know about the other locations, but the 92s and 76s certainly aren't idle in Nigeria!

[gulliBell]

I don't know how these things work, but on the face of it, 5 x AW139 + 5 x S76D + 14 x S92 would have to be worth more than $230M. So my way of thinking it would be an OK deal for the finance company for them to repossess them all.

[lowfat]

If they reposes them So much for big Dons claim that being Bankrupt in the US wont effect other independent parts of the Group..
Imagine if the 92s were the UKsar assets?
All of a sudden no cash...

[lowfat]

List of aircraft and location at the time of the signing from the legal documents

(i) in respect of Aircraft 1, Aircraft 3, Aircraft 4 and Aircraft 5, Australia;
(ii) in respect of Aircraft 7, Aircraft 8, Aircraft 9, Aircraft 11 and Aircraft 13, the United Kingdom;
(iii) in respect of Aircraft 2, Aircraft 6, Aircraft 10, Aircraft 12, Aircraft 16, Aircraft 17 and Aircraft 18, Norway;
and (iv) in respect of Aircraft 14, Aircraft 15, Aircraft 19, Aircraft 20, Aircraft 21, Aircraft 22, Aircraft 23 and Aircraft 24, Nigeria

“Aircraft 1” means (i) the AgustaWestland model AW139 aircraft with manufacturer’s serial number 41339

“Aircraft 2” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920124

“Aircraft 3” means (i) the AgustaWestland model AW139 aircraft with manufacturer’s serial number 31583

“Aircraft 4” means (i) the AgustaWestland model AW139 aircraft with manufacturer’s serial number 41370

“Aircraft 5” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920221,

“Aircraft 6” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920159,

“Aircraft 7” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920068

“Aircraft 8” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920065,

“Aircraft 9” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920066,

“Aircraft 10” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920228,

“Aircraft 11” means (i) the AgustaWestland model AW139 aircraft with manufacturer’s serial number 31310,

“Aircraft 12” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920070,

“Aircraft 13” means (i) the AgustaWestland model AW139 aircraft with manufacturer’s serial number 41378,

“Aircraft 14” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920103,

“Aircraft 15” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920082,

“Aircraft 16” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920025,

“Aircraft 17” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920011,

“Aircraft 18” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920012,

“Aircraft 19” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920075,

“Aircraft 20” means (i) the Sikorsky model S-76D aircraft with manufacturer’s serial number 761070

,21 means (i) the Sikorsky model S-76D aircraft with manufacturer’s serial number 761071,

Aircraft 22” means (i) the Sikorsky model S-76D aircraft with manufacturer’s serial number 761044,

“Aircraft 23” means (i) the Sikorsky model S-76D aircraft with manufacturer’s serial number 761045

“Aircraft 24” means (i) the Sikorsky model S-76D aircraft with manufacturer’s serial number 761046,.

full bs here http://ir.bristowgroup.com/static-files/ea6e3ee4-e544-41c8-a11b-44c27eac776d

[workhorse22]

Aicraft registrations and assumed locations entered in the quote.

List of aircraft and location at the time of the signing from the legal documents

(i) in respect of Aircraft 1, Aircraft 3, Aircraft 4 and Aircraft 5, Australia;
(ii) in respect of Aircraft 7, Aircraft 8, Aircraft 9, Aircraft 11 and Aircraft 13, the United Kingdom;
(iii) in respect of Aircraft 2, Aircraft 6, Aircraft 10, Aircraft 12, Aircraft 16, Aircraft 17 and Aircraft 18, Norway;
and (iv) in respect of Aircraft 14, Aircraft 15, Aircraft 19, Aircraft 20, Aircraft 21, Aircraft 22, Aircraft 23 and Aircraft 24, Nigeria

“Aircraft 1” means (i) the AgustaWestland model AW139 aircraft with manufacturer’s serial number 41339 [G-CKYP - Norwich, UK]

“Aircraft 2” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920124 [LN-ONY - Hammerfest, NO]

“Aircraft 3” means (i) the AgustaWestland model AW139 aircraft with manufacturer’s serial number 31583 [G-CIMU - Norwich, UK]

“Aircraft 4” means (i) the AgustaWestland model AW139 aircraft with manufacturer’s serial number 41370 [ZH-ZFP - Bairnsdale, AU]

“Aircraft 5” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920221, [VH-ZUW - Port Hedland, AU]

“Aircraft 6” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920159, [LN-OIB - Bergen, NO]

“Aircraft 7” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920068, [G-IACF - Scatsta, UK]

“Aircraft 8” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920065, [G-IACD - Sumburgh, UK]

“Aircraft 9” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920066, [G-IACE - Aberdeen , UK]

“Aircraft 10” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920228, [LN-ONM - Stavanger, NO]

“Aircraft 11” means (i) the AgustaWestland model AW139 aircraft with manufacturer’s serial number 31310, [G-CHBY - Aberdeen, UK]

“Aircraft 12” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920070, [LN-ONT - Norway, ?? not flying??]

“Aircraft 13” means (i) the AgustaWestland model AW139 aircraft with manufacturer’s serial number 41378, [G-CIKO - Norwich , UK]

“Aircraft 14” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920103, [G-CGCI - Aberdeen, UK]

“Aircraft 15” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920082, [5N-BLX, Nigeria]

“Aircraft 16” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920025, [LN-ONP - Stavanger, NO]

“Aircraft 17” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920011, [LN-ONN - Stavanger, NO]

“Aircraft 18” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920012, [LN-ONO - Stavanger, NO]

“Aircraft 19” means (i) the Sikorsky model S-92A aircraft with manufacturer’s serial number 920075, [5N-BOA, Nigeria]

“Aircraft 20” means (i) the Sikorsky model S-76D aircraft with manufacturer’s serial number 761070 [5N-BTD, Nigeria]

,21 means (i) the Sikorsky model S-76D aircraft with manufacturer’s serial number 761071, [5N-BTE, Nigeria]

Aircraft 22” means (i) the Sikorsky model S-76D aircraft with manufacturer’s serial number 761044, [5N-BRW, Nigeria]

“Aircraft 23” means (i) the Sikorsky model S-76D aircraft with manufacturer’s serial number 761045 [5N-BRX, Nigeria]

“Aircraft 24” means (i) the Sikorsky model S-76D aircraft with manufacturer’s serial number 761046, [5N-BRY, Nigeria]

[barbados sky]

Bristow Australia's contract with Santos supporting its Port Hedland based drilling program will be having a 12 month break from the end of October 2019. Bristow is believed to be re-deploying 2x S-92s VH ZUV and VH ZUW internationally to service other "contractual" requirements. VH ZUW which was included in the list of Bristow Equipment Leasing aircraft subject to missed payments could find its way back to GECAS owned PK Air Finance as a repossession.

From a high of over 30 offshore contracted helicopters and 500+ staff in 2014, Bristow Australia will now only be left with its Beach Energy contract for 1x AW139 + 1x uncrewed technical backup based in Tooradin, Victoria. Bristow has recently vacated its Perth Airport offices it occupied since 1994 and is understood to be vacating Western Australia's oil and gas market completely reducing to just a base office in Tooradin, Victoria.

Coupled with its wholly owned airline Air North for which Bristow paid $32m in 2015 being for sale, its hard to see how Bristow will be able to continue as a going concern in Australia as it downsizes to just 5% of its 2014 footprint.

[Brother]

good luck to the BRS staff, many who have been loyal to the company for a long time. Some good 92 blokes there. Amazing that when I interviewed for BRS in oz in 2011 they were expanding like mad. Not quite sure how it all went so bad for them.

[Shell Management]

Not quite sure how it all went so bad for them.

Some say a certain INPEX aviation adviser who had a big hand in that.

[workhorse22]

Surprisingly low activity in this thread, makes me wonder why. No rumors from within Bristow?

Bristow now closing a deal with PK Airfrance/Milestone with dedicated hearing sept. 18. See docket 610.

The agreement between the Debtors and the Milestone Parties set forth in the Milestone Term Sheet resolves several months of disputes, provides the Debtors with lease rates more aligned to market, consensually modifies a credit facility secured by, among other collateral, twenty-four aircraft, and resolves what would otherwise be a contested confirmation process with the Milestone Parties.

[helicrazi]

Well they hardly wanted to repossess them did they

[nowherespecial]

PK was/ is financing arm at GECAS, not a leasing company, and they were/ are acting as the agent for a financing consortium of lenders who may have had a very different view on seizing aircraft. The PK agreement is essentially a secured loan and those aircraft are not Milestone leased aircraft per se. They are (were) BRS owned aircraft with a secured loan against them. Not wildly important distinction but HC def hits the nail on the head when noting that lenders make money when they lend, not repossess.

[NumptyAussie]

Is this the same Milestone that injected $300M USD into CHC to help them out of chapter 11? The same Milestone which is part of GE? The same GE that the previous CHC CEO was employed by, prior to him taking over CHC and taking it into chapter 11?

[nowherespecial]

Not sure if that's aimed at me but, er yes. I think you already knew that though. The PK aircraft were not Milestone aircraft (parent company exempted), that's my only point. But I think you knew that too. PK's financing activities in rotary are dwarfed by those in fixed wing, rotary financing is just a small side line for that business unit.

Milestone injected the money into CHC as a way to keep their aircraft working, create obligation and make money in the medium term. It's actually a great deal for them, CHC needed money and Milestone wanted to keep their aircraft on contract with CHC, especially at the expense of their rivals. So this was a good bit of business for both parties.

KF came to CHC from GE's Power Division, although he had worked in the aviation side (never in GECAS though). Not entirely sure what your point is on that one?

[nomorehelosforme]

Bristow Group Inc. on Nov. 1 announced that it has emerged from Chapter 11 bankruptcy protection, successfully completing its debt restructuring process and implementing the Chapter 11 reorganization plan confirmed by the U.S. Bankruptcy Court for the Southern District of Texas on Oct. 4, 2019.
Bristow has reduced its debt significantly and is emerging with $535 million of new capital, which it believes will provide significant financial flexibility to support its global operations. The company also announced it has amended and reinstated its $75 million term loan as of its emergence.

L. Don Miller, president and chief executive officer of Bristow, said, “We are beginning this new chapter of Bristow’s proud history having achieved our key restructuring goals: a stronger balance sheet and improved liquidity that will enable us to continue providing industry-leading service to our global client base. I would like to commend our global team for its unwavering focus on delivering safe and efficient service to our clients and passengers as we navigated the restructuring process.”

Miller continued, “We are committed to further building on our global leadership role in offshore oil-and-gas transportation and search-and-rescue. As we have throughout this process, we remain focused on being ‘best in class’ for all our stakeholders, particularly our employees, customers and new owners as we continue to look for ways to drive innovation and efficiencies across the global business.”

In accordance with the plan of reorganization, Bristow’s new board of directors has assumed its responsibilities. The new board will be chaired by Aris Kekedjian, and includes Wesley E. Kern, Robert J. Manzo, Lorin L. Brass, G. Mark Mickelson, Brian D. Truelove, Hooman Yazhari and L. Don Miller, who will continue to serve on the board. Former Bristow director Ian A. Godden will continue to serve as chairman of Bristow Aviation Holding Limited, Bristow’s U.K. affiliate, and serve in an advisory role to Bristow.

[Nigerian Expat Outlaw]

Out of the frying pan, into the fire.......... :uhoh:

NEO

[[email protected]]

Has someone just allowed them to print some more money?

Debt restructuring sounds like robbing Peter to pay Paul.

[industry insider]

It’s a debt for equity swap essentially, similar to PHI. There is not one real aviation qualified person on the new Bristow board.

The new owners will want their money back as soon as possible, but operating profits are almost impossible to achieve in the current oil and gas environment. The UK SAR contract might be the only profitable part.

The oil and gas industry globally is going to have to get used to paying more or find another way to crew change it’s workers.