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-   -   Airnorth future? Bristow in financial trouble (https://www.pprune.org/australia-new-zealand-pacific/620752-airnorth-future-bristow-financial-trouble.html)

PCAU 9th May 2019 04:17


Originally Posted by Icarus2001 (Post 10466788)
Great, their EBITDA figures are not too bad. What about after they have paid their bills? My earnings before tax are pretty good too but those dollars are useless in the real world as I cannot spend them.

EBITDA. Earnings BEFORE interest, tax, depreciation and amortisation.

Well obviously the corporate tax rate for the Australian entity is a flat 30%, however this is only applied after deducting the NON-CASH expenses of Depreciation and Amortisation, resulting in an effective lowering of the tax rate payable. Of course the wild card is the Interest component which is Interest Income - Interest Expense, so depending on their cash at bank vs cash loans/drawn credit facilities it could be a plus or minus. Remembering that operational leases such as for aircraft and equipment are categorised as direct expenses and the interest component is rarely separated, hence my distinction that it only relates Cash Loan facilities.

Therefore, after D and A and even accounting for some I, they probably paid next to no tax and got to keep most all of the cash actually!

PCAU 10th May 2019 05:59

The big question remains whether or not they will look to sell, or if Bristow would like to try and retain AirNorth (and Eastern for that matter) when/if they go through the Chapter 11 process?

The airline doesn’t seem a natural fit for any of the incumbents, save MAYBE for Alliance, but even then not really... Maybe the most likely option would be Private Capital or another adjacent operator (like Bristow were).

belly tank 11th May 2019 20:28

Bristow files for CH11

Bristow Group Inc. - Home

VH DSJ 11th May 2019 21:54


Originally Posted by belly tank (Post 10469218)
Bristow files for CH11

Bristow Group Inc. - Home


That statement says "Filings Include Certain U.S. Entities and Cayman Islands Subsidiaries; All Other Non-U.S. Entities Excluded from Filings ...
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."

By that, let's hope it means Air North is still operating tomorrow. Can anyone confirm?

Hasherucf 12th May 2019 00:32


Originally Posted by VH DSJ (Post 10469261)
That statement says "Filings Include Certain U.S. Entities and Cayman Islands Subsidiaries; All Other Non-U.S. Entities Excluded from Filings ...
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."

By that, let's hope it means Air North is still operating tomorrow. Can anyone confirm?


Business as usual at Airnorth

PCAU 12th May 2019 07:05

It’s business as usual for the whole of Bristow at this stage... Chapter 11 “Bankruptcy” Protection in the US is much like ‘Administration’ for a company in Aus, with one Main difference being that the standing management retain control, not an external advisor. It basically just stops financiers from being able to pull the ripcord and they can threaten liquidation as the alternative to force renegotiated loans/equity swaps etc. (which is the bit shareholders don’t want as it can seriously weaken their existing holdings by the banks taking a massive chunk of new shares in exchange for wiping the debt. In some historic cases it’s rendered existing stockholders’ stake from 100% to effectively less than 1%) Who knows what deal they will strike but those bankers can ask for assets or other things to be divested as part of the deal, which may force their hand and see the fixed-wings sold off, I highly doubt they would let them collapse.


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