UK SAR 2013 privatisation: the new thread
Meanwhile, back at the coal face, four years after contract start date, the full contracted fleet will soon be in place when the AW189 starts operating at Inverness in the spring. 
Just steady revenue from now on?
Just steady revenue from now on?
I wonder if CHC and Babcock are in with HMC right now to see if the SAR contract can be torn up with BRS likely to breach some contractual financial requirements? The service needs to be safeguarded. While no expert on SAR at all, judging by the numbers proposed above, the loss of this service for even a few days could have major impact on lives and safety.
As a second level of detail, I would suspect that a contract of this size would require a performance bond and a parent company guarantee which the customer (HMC) could call on in the event the local BRS entity were no longer able to perform the work. The issue here of course will be that the parent is unlikely to be able to fulfill it either. Most contracts I have seen also contain termination clauses in the event of financial problems or material breaches of corruption laws. If the Senior Management Team are being sued, that (for me) would def constitute a breach serious enough to contemplate termination (were it to be proven of course). I can't see any operator other than CHC and Bbk being able to stand up such a service in a short period of time (and CHC might have a small advantage here as the 189 is already in the fleet, albeit not in the UK so far as I'm aware). Equally the government (via HMC) would not be able to take over the contract as they lack the technical knowledge to run the aircraft in the fleet (even if they were allowed to).
I hope I'm wrong, SAR is a wonderful and needed service but how the whole BRS situation comes to a head will be fascinating to watch.
As a second level of detail, I would suspect that a contract of this size would require a performance bond and a parent company guarantee which the customer (HMC) could call on in the event the local BRS entity were no longer able to perform the work. The issue here of course will be that the parent is unlikely to be able to fulfill it either. Most contracts I have seen also contain termination clauses in the event of financial problems or material breaches of corruption laws. If the Senior Management Team are being sued, that (for me) would def constitute a breach serious enough to contemplate termination (were it to be proven of course). I can't see any operator other than CHC and Bbk being able to stand up such a service in a short period of time (and CHC might have a small advantage here as the 189 is already in the fleet, albeit not in the UK so far as I'm aware). Equally the government (via HMC) would not be able to take over the contract as they lack the technical knowledge to run the aircraft in the fleet (even if they were allowed to).
I hope I'm wrong, SAR is a wonderful and needed service but how the whole BRS situation comes to a head will be fascinating to watch.
I don't think that any operator would be able to take over the UK SAR contract short term without utilising BRS aircraft, crews and facilities. It would be easier for someone to buy out the part of BRS which operates the SAR contract and take on the existing aircraft (crewed) and facilities now that BRS has sold all the aircraft to raise cash.
If it really came to the crunch, there is the Swedish option and just nationalise it. However, nobody should expect that level of pragmatism to eclipse political dogma in 2019 Britain. Back in 2013, there had been expectations that Bond would get Lot 2 and that would have been more complicated in some ways but the financial resilience in circumstances like these would be vastly improved.
I am expecting it to blow over.
UK SAR is a turning into a proper revenue earner. Four or five months from now all the transition pains will be relieved, another two GAP aircraft shipped out, and it should be plain sailing to the end of contract.
I am expecting it to blow over.
UK SAR is a turning into a proper revenue earner. Four or five months from now all the transition pains will be relieved, another two GAP aircraft shipped out, and it should be plain sailing to the end of contract.
G-MCGM, the original Vergiate AW189 SAR, is currently at Inverness training in preparation for the 1st May start of operations as Rescue/Coastguard 151. It appears to have undergone a few upgrades since we first saw it at Norwich four and half years ago! A second aircraft is expected to join it at Inverness shortly.
Last night, twenty of us from SMR teams across the NW Highlands were at Dalcross training with it. More such training will take place next week.
Pilot enthusiasm for the type was much in evidence.
Last night, twenty of us from SMR teams across the NW Highlands were at Dalcross training with it. More such training will take place next week.
Pilot enthusiasm for the type was much in evidence.
If only they weren't also losing rearcrew and steadfastly failing to acknowledge the poor salaries for technical crew are the root cause - as noted at the beginning of the contract.
So it is encouraging to see that 200+ paramedics applied for the 5 rear crew positions advertised recently. Hope they are prepared for a huge drop in pay and conditions ;-)
So it is encouraging to see that 200+ paramedics applied for the 5 rear crew positions advertised recently. Hope they are prepared for a huge drop in pay and conditions ;-)
SAR technical crew have a great, although physically, mentally and emotionally challenging, job and their skill-set and commitment is woefully undervalued by bean counters, especially when advised by those who know no better.
When you place those who should know better on the management side in pay negotiations then there is little chance of remedying the situation.
Bristow Group Puts Bankruptcy on the Table
2:58 pm ET April 17, 2019 (Dow Jones) Print
By Becky Yerak
Aviation services business Bristow Group Inc. said bankruptcy is an option as it tries to restructure its debt in the face of dwindling liquidity.
The Houston-based company, which provides helicopter transportation services to oil and gas companies and has business units focused on search, rescue and aircraft-support services, said Monday that it has hired financial Houlihan Lokey Inc. and Alvarez & Marsal Holdings LLC and law firms Baker Botts LLP and Wachtell, Lipton, Rosen & Katz.
The professional firms, all prominent names in restructuring circles, will review strategic and refinancing alternatives that would allow Bristow to restructure its debt and other contractual obligations at a time when the company's level of cash and available credit is falling.
As of late last week, Bristow had $202.1 million in cash and liquidity available under its asset-based lending facility. That's down from $236.9 million at the end of the year and $319.5 million in the immediately preceding quarter, regulatory filings show.
"We have engaged financial and legal advisors to assist us in, among other things, analyzing various strategic financial alternatives to address our liquidity and capital structure, including strategic financial alternatives to restructure our indebtedness," Bristow said in a filing Monday with the Securities and Exchange Commission.
"We and certain of our subsidiaries may elect to implement such a transaction through chapter 11 of the U.S. Bankruptcy Code to obtain court approval of such transactions," it said.
Bristow has major operations in the North Sea, Nigeria and the Gulf of Mexico, and in most other major offshore oil-and-gas producing regions of the world, including Australia, Brazil, Canada, Russia and Trinidad. It said it also provides search-and-rescue services to the private sector worldwide and to the public sector in the U.K.
The decline in oil and gas prices has been a contributing factor in the bankruptcies in recent years of at least four other helicopter services companies, including PHI Inc.
Bristow said in its SEC filing earlier this week that its liquidity has been hurt by a prolonged downturn in the offshore oil and gas market, its debt levels, lease and aircraft purchase commitments and certain other commercial contracts. The company said it has substantial interest payment obligations related to its debt, as well as major lease and aircraft purchase commitments, over the next year.
A bankruptcy filing would protect Bristow from creditors and give the company a chance to revisit contracts.
Bristow also said Monday that it was taking advantage of a 30-day grace period and not making a $12.5 million interest payment due this week on 6.25% bonds maturing in 2022 as it continues to review its financing.
Those bonds were trading Wednesday at 17 cents on the dollar.
Bristow spokesman Adam Morgan told The Wall Street Journal Wednesday that the company was working with advisers to best position the business both financially and operationally.
Mr. Morgan said no final decisions have been made on how Bristow will reach that goal, adding that the company wouldn't speculate on the potential outcome of the work being done with advisers.
Bristow said in its regulatory filing that it also has obtained waivers from certain lenders that give it more time to file its financial report for the quarter ended Dec. 31. Bristow said internal controls over its financial reporting were ineffective as of March 31, 2018, and in subsequent reporting periods.
Write to Becky Yerak at [email protected]
WSJ Pro Bankruptcy also covers distressed companies. Inclusion of a company in this category is not intended to suggest that it will file for bankruptcy protection, default on its debt or suffer any other financial failure.
(END) Dow Jones Newswires
April 17, 2019 14:58 ET (18:58 GMT)
2:58 pm ET April 17, 2019 (Dow Jones) Print
By Becky Yerak
Aviation services business Bristow Group Inc. said bankruptcy is an option as it tries to restructure its debt in the face of dwindling liquidity.
The Houston-based company, which provides helicopter transportation services to oil and gas companies and has business units focused on search, rescue and aircraft-support services, said Monday that it has hired financial Houlihan Lokey Inc. and Alvarez & Marsal Holdings LLC and law firms Baker Botts LLP and Wachtell, Lipton, Rosen & Katz.
The professional firms, all prominent names in restructuring circles, will review strategic and refinancing alternatives that would allow Bristow to restructure its debt and other contractual obligations at a time when the company's level of cash and available credit is falling.
As of late last week, Bristow had $202.1 million in cash and liquidity available under its asset-based lending facility. That's down from $236.9 million at the end of the year and $319.5 million in the immediately preceding quarter, regulatory filings show.
"We have engaged financial and legal advisors to assist us in, among other things, analyzing various strategic financial alternatives to address our liquidity and capital structure, including strategic financial alternatives to restructure our indebtedness," Bristow said in a filing Monday with the Securities and Exchange Commission.
"We and certain of our subsidiaries may elect to implement such a transaction through chapter 11 of the U.S. Bankruptcy Code to obtain court approval of such transactions," it said.
Bristow has major operations in the North Sea, Nigeria and the Gulf of Mexico, and in most other major offshore oil-and-gas producing regions of the world, including Australia, Brazil, Canada, Russia and Trinidad. It said it also provides search-and-rescue services to the private sector worldwide and to the public sector in the U.K.
The decline in oil and gas prices has been a contributing factor in the bankruptcies in recent years of at least four other helicopter services companies, including PHI Inc.
Bristow said in its SEC filing earlier this week that its liquidity has been hurt by a prolonged downturn in the offshore oil and gas market, its debt levels, lease and aircraft purchase commitments and certain other commercial contracts. The company said it has substantial interest payment obligations related to its debt, as well as major lease and aircraft purchase commitments, over the next year.
A bankruptcy filing would protect Bristow from creditors and give the company a chance to revisit contracts.
Bristow also said Monday that it was taking advantage of a 30-day grace period and not making a $12.5 million interest payment due this week on 6.25% bonds maturing in 2022 as it continues to review its financing.
Those bonds were trading Wednesday at 17 cents on the dollar.
Bristow spokesman Adam Morgan told The Wall Street Journal Wednesday that the company was working with advisers to best position the business both financially and operationally.
Mr. Morgan said no final decisions have been made on how Bristow will reach that goal, adding that the company wouldn't speculate on the potential outcome of the work being done with advisers.
Bristow said in its regulatory filing that it also has obtained waivers from certain lenders that give it more time to file its financial report for the quarter ended Dec. 31. Bristow said internal controls over its financial reporting were ineffective as of March 31, 2018, and in subsequent reporting periods.
Write to Becky Yerak at [email protected]
WSJ Pro Bankruptcy also covers distressed companies. Inclusion of a company in this category is not intended to suggest that it will file for bankruptcy protection, default on its debt or suffer any other financial failure.
(END) Dow Jones Newswires
April 17, 2019 14:58 ET (18:58 GMT)
said Monday that it has hired financial Houlihan Lokey Inc. and Alvarez & Marsal Holdings LLC and law firms Baker Botts LLP and Wachtell, Lipton, Rosen & Katz.
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UK SAR is a turning into a proper revenue earner. Four or five months from now all the transition pains will be relieved, another two GAP aircraft shipped out, and it should be plain sailing to the end of contract.
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Long stop position: just return SAR to the military and remove the commercial bean counter option that will never provide a viable service without risk.
Pedro 45 in 1968!
Pedro 45 in 1968!
I think UK SAR is the only thing of real value in Bristow.
A long contract with guaranteed revenue.
Almost all other contracts (offshore) have a 90 day clause.
I expect the UK SAR contract (with AOC) will be sold off.
The fact that they have not yet turned to Chapter 11 is a sign that they have not yet found a buyer.
The rest is then up for grabs.
A long contract with guaranteed revenue.
Almost all other contracts (offshore) have a 90 day clause.
I expect the UK SAR contract (with AOC) will be sold off.
The fact that they have not yet turned to Chapter 11 is a sign that they have not yet found a buyer.
The rest is then up for grabs.
Fascinating. Do you understand that the British military is so short staffed and desperate that they even employ me! If it returned to the military now, I'd expect somebody to ring up from Abbey Wood to ask if it could be done with a leased Transit van until the end of the next financial year.
I think UK SAR is the only thing of real value in Bristow.
A long contract with guaranteed revenue.
Almost all other contracts (offshore) have a 90 day clause.
I expect the UK SAR contract (with AOC) will be sold off.
The fact that they have not yet turned to Chapter 11 is a sign that they have not yet found a buyer.
The rest is then up for grabs.
A long contract with guaranteed revenue.
Almost all other contracts (offshore) have a 90 day clause.
I expect the UK SAR contract (with AOC) will be sold off.
The fact that they have not yet turned to Chapter 11 is a sign that they have not yet found a buyer.
The rest is then up for grabs.
