Go Back  PPRuNe Forums > Aircrew Forums > Rotorheads
Reload this Page >

What's happening in CHC?

Rotorheads A haven for helicopter professionals to discuss the things that affect them

What's happening in CHC?

Old 21st Nov 2015, 16:30
  #281 (permalink)  
Join Date: Feb 2001
Location: Sometimes here, sometimes there
Posts: 440
Received 6 Likes on 3 Posts
helimutt, my rebuttal was not meant to be an attack on your poor education.

My response was driven by a desire to protect the great pilots I have the privilege of working alongside from the unnecessary stresses your speculative post could cause. The pilots in Aberdeen and Denes went through some pretty crap times this year and don't need some implying it is about to be repeated.

So before you make similar posts, please think about the impact your message can have on others.
Variable Load is offline  
Old 21st Nov 2015, 20:23
  #282 (permalink)  
Join Date: Dec 2006
Location: UK and MALTA
Age: 61
Posts: 1,297
Likes: 0
Received 18 Likes on 4 Posts
VL well said and if you read the transcripts from the last CHC investors meeting the new boss seems to be making some healthy positive changes. I just hope the oil price doesn't defeat his efforts.

Best Regards

DOUBLE BOGEY is offline  
Old 22nd Nov 2015, 16:06
  #283 (permalink)  
Join Date: May 2009
Location: uk
Posts: 254
Received 6 Likes on 5 Posts
The old adage that O&G contracts are actually, in essence, only a rolling 3-month contract and not really worth the paper they're written on, needs to be kept at the forefront of your mind on a ****ty night approach just to keep you on your toes.
Good to see HeliOffshore not even looking at that side of the house........
If you find yourself in receipt of redundancy - count your blessings - and find a career where you're skills and experience are valued not costed.
JulieAndrews is offline  
Old 22nd Nov 2015, 18:36
  #284 (permalink)  
Join Date: Apr 2008
Location: Out of Africa
Age: 71
Posts: 230
Likes: 0
Received 0 Likes on 0 Posts
Monty Python

"Work 29 hours a day down mill then pay mill owner to come to work"

Never Fretter - this is a pretty good description of most Low Cost Airlines is it not?

Troglodita is offline  
Old 23rd Nov 2015, 21:20
  #285 (permalink)  
Join Date: Dec 2006
Location: retirementland
Age: 79
Posts: 769
Likes: 0
Received 0 Likes on 0 Posts
The CAA have said its time that the helicopter operators start to adopt more fixed wing practices. Perhaps that's what they mean.
Shell Management is offline  
Old 24th Nov 2015, 13:31
  #286 (permalink)  
Join Date: Jun 2005
Location: nowhere special
Posts: 470
Received 9 Likes on 5 Posts
I see the people who took CHC's Mozambique contract are already bleeding pilots.... Advertising for multiple crew positions in this market is not a positive sign for how well they treat their people or the conditions they operate under. It strikes me that they either never had the required number of people or those they did have would rather be unemployed than at Inaer in this market. Both of these things say a lot.

INAER, líder global en servicios aéreos de emergencia y mantenimiento de aeronaves
nowherespecial is offline  
Old 28th Nov 2015, 19:29
  #287 (permalink)  
Join Date: Dec 2007
Location: the land of redemption
Age: 53
Posts: 250
Likes: 0
Received 8 Likes on 1 Post
They're bleeding people basically because Pemba is a non flight ENI base.
And Italians pay less and less than CHC.
maeroda is offline  
Old 28th Nov 2015, 23:13
  #288 (permalink)  
Join Date: Sep 2013
Location: beneath the stars
Posts: 30
Likes: 0
Received 0 Likes on 0 Posts
Second round of redundancies coming for the offshore touring engineers pool in Australia this year.
Customer no longer requires the services of two helicopters so Chc no longer requires the services of 18 engineers.
The number seems a bit excessive for the loss of two airframes.
driftwood1 is offline  
Old 29th Nov 2015, 03:36
  #289 (permalink)  
Join Date: Oct 2008
Location: Everywhere
Posts: 514
Received 6 Likes on 4 Posts
The number seems a bit excessive for the loss of two airframes.
That'll be the HR flunky making excuses to get rid of people.

Checklist Charlie is offline  
Old 29th Nov 2015, 06:35
  #290 (permalink)  
Join Date: Jul 2006
Location: Ban Don Ling
Posts: 244
Likes: 0
Received 0 Likes on 0 Posts
Use your Checklist, Charlie

1. Loss of contract(s) ......... Yes
2. Check headcount ........ Above Required
A. Any work on the horizon ........ Unlikely
B. Check cash flow. ...............Bleeding heavily
3. HR button ............. Engage

Considerations: as a pre-caution check office staff headcount is reduced proportionally
tistisnot is offline  
Old 29th Nov 2015, 07:33
  #291 (permalink)  
Join Date: Aug 2007
Location: Here and There
Posts: 41
Likes: 0
Received 0 Likes on 0 Posts
Who would have thought laying off front line employees and revenue producers while hiring more Senior Vice Presidents, Consultants, Analysts and professional schedulers would have a negative impact on business?!?!

CHC was in trouble long before the price of oil came down, $50/barrel was just the straw that broke the camels back.
imuney is offline  
Old 29th Nov 2015, 07:41
  #292 (permalink)  
Join Date: Oct 2008
Location: Everywhere
Posts: 514
Received 6 Likes on 4 Posts
Dallas is the answer and will fix it !

Checklist Charlie is offline  
Old 29th Nov 2015, 18:23
  #293 (permalink)  
Join Date: Mar 2001
Location: UK
Posts: 424
Received 0 Likes on 0 Posts
AMIS is the way forward LOL!
The Claw is offline  
Old 1st Dec 2015, 23:47
  #294 (permalink)  
Join Date: Aug 2003
Location: LOS
Age: 67
Posts: 580
Likes: 0
Received 0 Likes on 0 Posts
30 to 1 reverse split just announced.......
Outwest is offline  
Old 2nd Dec 2015, 01:23
  #295 (permalink)  
Join Date: Sep 2005
Location: Montreal
Posts: 723
Received 20 Likes on 12 Posts
So at today's price of .292, a share will now be worth about $9. But the market capitalization of the company will remain the same at 25m. Thought it had to be over 50m to stay listed on NYSE.

I need nowherespecial or pittsextra to make sense of this for me. Why is it important to stay listed? Chapter 11 implications?
malabo is online now  
Old 2nd Dec 2015, 08:17
  #296 (permalink)  
Join Date: Jun 2005
Location: nowhere special
Posts: 470
Received 9 Likes on 5 Posts
Malabo, thanks for the shout!

This is the number we were waiting for for compliance with NYSE rules. The minimum share value (as I got wrong before before everyone enjoys reminding me) is $1 so taking it up to $9 should provide plenty of leeway. If it crashes down to lower than a dollar from there I think the game is well and truly up. I think the NYSE valuation model requires $40m not $50m but not sure if CHC is a domestic company (registered in Grand Cayman after all) or classified as foreign which is either $60m or $100m. Either way, the valuation is difficult.

In terms of staying listed, I think that the listing of CHC was done by CD&R to fulfil their last remaining investment objective with the business. Keeping it listed makes almost no sense today, it's just dragging CHC's name through the mud in public. We have to think of the way finance people think to understand why listing is important but in essence it's a good way to recover their original investment money. There are more stringent rules financially for publically traded companies so in theory it might be easier for CD&R to buy CHC outright and de-list but that would require pouring good money after badly invested money so why would they do that?

In terms of insolvency (you mention Ch 11), that in theory happens when one of 2 things happen. You either run out of cash reserves or your total liabilities exceed the value of your company. CHC is sailing close to the wind on both for sure. What filing for Chapter 11 would do is in theory allow protection from creditors (ie people to whom CHC owe money to) while they sort out their business and find a viable model to proceed with. A by product of CH 11 proceedings is usually a huge haircut for the creditors (maybe they get back 30c on the $ for example). This would be an absolutely brilliant way to get CHC out of the mud where it is now as what is crippling CHC is centrally held debt BUT.. and it's a big but, CHC's major creditor is also a 40%+ shareholder so the chances of this ever happening are sadly slim. lso, as CHC is not a US company (Grand Cayman), I'm not sure how the legalities of filing for CH 11 protection work as it is a US thing and not replicated globally.

It looks like the new mgmt team are doing a good job of trimming the fat out of the organisation and finding that viable business model I mentioned above. The difficulty is doing it now in the middle of possibly the worst oil slump for a generation, rather than doing it when the going was good.

In my opinion, CHC will carry on limping until there is a good way to refinance that debt despite all the good people, work and intentions that are in place there.
nowherespecial is offline  
Old 2nd Dec 2015, 09:47
  #297 (permalink)  
Join Date: Jan 2012
Location: UK
Posts: 1,138
Received 17 Likes on 15 Posts
The stock consolidation is just house keeping. I believe CHC will come to the market next week with commentary over their latest Q numbers but given oil is trading where it is I don't see anything that changes the investment view.

Simply cutting costs is unsophisticated and it seems to me that CHC's executive merely live in hope that crude prices rebound which if you look at oil production and global economic growth it's hard to see that happening in a timescale that suits CHC.

Maybe next weeks earnings call gives something new but I doubt it. Just my view and it might be wrong it's the internet, etc, etc good luck if you work there or have skin in the game but as I have said all along - like it or not the stock price is telling you something about the under lying entity. FACT.
Pittsextra is offline  
Old 2nd Dec 2015, 10:24
  #298 (permalink)  
Join Date: Jun 2005
Location: nowhere special
Posts: 470
Received 9 Likes on 5 Posts
A strange thing just happened, Pitts and I almost agreed with each other! Apart from the use of capital letters to make a point
nowherespecial is offline  
Old 3rd Dec 2015, 03:41
  #299 (permalink)  
Join Date: May 2000
Location: uk
Posts: 268
Likes: 0
Received 0 Likes on 0 Posts
CHC are required to maintain compliance with the NYSE’s $50 million average global market capitalization and shareholders’ equity over a consecutive 30 trading-day period. NYSE have accepted CHC's plan to regain this level and have given the company until Feb 2017 to achieve this.

Having a stock exchange listing requires a very high degree of transparency (Contract award/loss, profit/loss forecasts, legal issues, Director sharedealings, takeover/merger plans etc.) Basically there should be no secrets and therefore no surprises for investors.

The advantages of a listing normally include better credit ratings and less perceived risk to anyone investing in you or doing business with your company.

Unfortunately as CHC, are finding out, one of the disadvantages is that your poor performance gets a public airing at least every quarter and this almost certainly has a negative influence on anyone looking to award or renew a contract with them.

I am unsure why CHC are doing this to themselves over a paltry $25 million of traded capital?


Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.

Warren Buffett
Max Contingency is offline  
Old 3rd Dec 2015, 11:18
  #300 (permalink)  
Join Date: Jun 2005
Location: nowhere special
Posts: 470
Received 9 Likes on 5 Posts
Max, one of the answers would be to save the cost of taking the firm private again (buying each other out would be very pricey). You also have to consider the exit strategies from coming off the NYSE (or any other exchange for that matter) of the PE owners which almost always will end in another IPO. With IPOs being priced at 3-5% of the value of the company as the bankers fee or a flat fee equivalent, it's not surprising that remaining listed is the best of a bad bunch.

I heartily agree that having ones name dragged along through the mud is sad to see every quarter but is the price for CHC as a company to pay for having largely discredited former management and reckless owners.
nowherespecial is offline  

Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.