What's happening in CHC?
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how about we spare a thought for those with families and mortgages caught up in all this.
Fact is most of us are type A personalities, we'll deal with this with a measure of sarcasm, roll up our sleeves and move on. (with or without CHC.)
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MGD, once again we are in chronic agreement.
On the topic of the NYSE rules, I actually deleted that post once I found the rule everyone was quoting about but hey ho, I'll take that as a learning point.
On that topic though, CHC (CD&R) can just do a 10:1 swap and miraculously the shares become worth $4 again. It's easy to do, Apple and Citigroup are among the companies that have altered their share structure in this way.
Mitchaa you too are right
Professional investors (of the buy and hold brigade) bought a huge chunk of the remaining 25% (ish) that CD&R didn't buy and now the available shares for joe public for private investment is a fraction of the total number of shares. On a daily basis around 350k shares are traded (current value about $170k) of the outstanding (ie shares that were issued at the IPO) 72m. It's a very illiquid stock, a very small company by NYSE standards and a bit of a tight spot (but emerging) with bad sentiment and some long term investors. We should all expect volatility.
Pitts, after this I'm done but I note that you didn't actually answer my 2 questions.
I've just bought 2000 shares and we can revisit this conversation in 2 years time.
On the topic of the NYSE rules, I actually deleted that post once I found the rule everyone was quoting about but hey ho, I'll take that as a learning point.
On that topic though, CHC (CD&R) can just do a 10:1 swap and miraculously the shares become worth $4 again. It's easy to do, Apple and Citigroup are among the companies that have altered their share structure in this way.
Mitchaa you too are right
Professional investors (of the buy and hold brigade) bought a huge chunk of the remaining 25% (ish) that CD&R didn't buy and now the available shares for joe public for private investment is a fraction of the total number of shares. On a daily basis around 350k shares are traded (current value about $170k) of the outstanding (ie shares that were issued at the IPO) 72m. It's a very illiquid stock, a very small company by NYSE standards and a bit of a tight spot (but emerging) with bad sentiment and some long term investors. We should all expect volatility.
Pitts, after this I'm done but I note that you didn't actually answer my 2 questions.
I've just bought 2000 shares and we can revisit this conversation in 2 years time.
Still think everything is all rosy there Buddy!
I will be more than happy to revisit this conversation along with my original post and say "Boy did I tell you so"
My original prediction of MAX 2 years almost a year ago is going to turn out to be spot on.
It's simple basic 1 on 1 economics....It was never going to survive...no matter what
Here is my original post
Here are the Facts on CHC's Fiscal performance
85% of the Heli's are Leased
50% of the Heli's are NOT on Contract
Last Financial Year
1,650 Million total Income approx
Last Financial Year Expences (NOT ALL JUST THE BASICS)
109 Million P.A. in Administration (hangers on in Head Offices)
330 Million Crew Costs ( no change in the last 2 years)
1,100 Million in Leasing Costs (Heli's, building ETC)
145 Million Interest on Primary Debt.
Last Financial Year
190 Million NET LOSS
Look at the Interest on primary debt $145 Million.....so even if the Company has NO Debt it would still run at a loss.
That $600 Million CD & R bought as preferred Shares is just another Company Credit Card ....CD & R receive 8.5% Interest P.A. on the purchase Price....Take at look at the the last Quartely results and you will see the 10 Million in interest.
So what they have done is take the $600 Million dropped down the Primary Debt from around 1.5 Billion to 1.3 Billion...Spent god knows how much on new Machines, because no leasing Company will touch them....The end result is in reality the Primary Debt as I see it was about 1.45 Billion and it has now ballooned out to around 1.7 Billion. I haven't even mentioned the Senior Notes yet....I won't go into to much detail....But it goes like this... there is 100's of Millions in Senior Notes that the Company doesn't have to pay a cent on until the maturity of the Agreement.
If there was ever a Company that was insolvent this is it.
It's like this....If you had a Credit Card that got maxed out on,....Then you would get another one to pay the interest Bill on the first Card (Senior Notes) Then when the Second Card get maxed out you get a third Card ( CD & R $600 Million @ 8.5%) to pay the Interest on the Second.
That Moron Joan Hooper only ever Quoted EBITDAR and Cash Flow...No wonder she was sacked!
I give the Company 2 Years MAX before the Padlocks go on the Doors.
My best bet is G.E. will swoop in when it finally grinds to a halt.
If you want hours and hours of Fun Reading here are the 175 Pages of the FACTS (Form 10K)
If anyone things they can dig they way out of this Hole I'm all Ears!!
Last edited by buzz66; 18th Apr 2016 at 05:41. Reason: more info
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My best bet is G.E. will swoop in when it finally grinds to a halt.
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You should start a new Helicopter Pilot support thread, and maybe all the saddies could meet there for a group hug.
Fact is most of us are type A personalities, we'll deal with this with a measure of sarcasm, roll up our sleeves and move on. (with or without CHC.)
Fact is most of us are type A personalities, we'll deal with this with a measure of sarcasm, roll up our sleeves and move on. (with or without CHC.)
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I'm one of the ones caught up in this that Driftwood1 is taking about and I have to say, I'm with letmein on this....Type A or not, this is not the first time in almost 40 years in this business that I'm faced with looking for a job. As Karl himself said in that investor report "Chapter 11 is unavoidable" so what's the problem with stating facts. I have not seen a post that says " I hope they go tits up" but lets face it, there is no good news to be had.
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Type A....eh.
Well I am a "type D augmented" and only a few will know what that means , who dubbed me by that moniker but more importantly what the implications are except to say that I have little time for type A's.....ego el supremo.
Well I am a "type D augmented" and only a few will know what that means , who dubbed me by that moniker but more importantly what the implications are except to say that I have little time for type A's.....ego el supremo.
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Downgrade in response to election to not make debt payment
https://www.moodys.com/research/Mood...ive--PR_347464
An expected response to the activities of the last couple of days.
https://en.wikipedia.org/wiki/Moody%...estors_Service
An expected response to the activities of the last couple of days.
https://en.wikipedia.org/wiki/Moody%...estors_Service
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The Beginning of The End? - The Party is Over, don't drive home drunk.
CHC Helicopters Canada is (CYYT Operation) officially 'toast'. Half the pilots have been told they are done mid month in May. The rest the end of May. Some of their senior guys who saw this coming have already bolted, or announced their intention do so before the last day of ops. 
Meanwhile in the antipodes on the other side of the world, relations between CHC and TAS (CHC's major Asian partner) are less than convivial. The plans for the upcoming divorce are now well known, and TAS will walk on its own without any participation from CHC. TAS gets the house and the new cars, CHC gets custody of the children (CHC staff), the old cars, and a small lump-sum alimony. It is presumed that the children will be let go in stages as TAS evolves to complete self sufficiency. From the TAS point of view, CHC's Humming Bird has been the "Albatross around their neck" from the The Rime of the Ancient Mariner.
As with both of my own divorces, there appears to be little love lost in the upcoming disassociation. 
Some things on the go from the various head sheds of late are not unlike self immolation. If one did not know better, it is almost as if there is now an intent to engineer a collapse in order to rebuild it from the ashes. Is the new logo for CHC going to be a Phoenix, or is it just going to be a Dead Duck? Maybe CHC will stagger on for a few months on the cash infusion from TAS's buyout of the CHC shares. Kind of like burning blankets to stay warm on a cold night. Works today, but what about tomorrow?
I believe they have a term in Newfoundland that might fit this situation "The arse is out of 'er b'ys!" If there is a recovery from the vortex ring state the Red Humming Bird has maneuvered itself into, it will be a long way off with more severe pain along the way. More than likely, a very hard landing, followed immediately by a dynamic rollover.
Meanwhile, the SLT will retain their golden parachutes.
Meanwhile in the antipodes on the other side of the world, relations between CHC and TAS (CHC's major Asian partner) are less than convivial. The plans for the upcoming divorce are now well known, and TAS will walk on its own without any participation from CHC. TAS gets the house and the new cars, CHC gets custody of the children (CHC staff), the old cars, and a small lump-sum alimony. It is presumed that the children will be let go in stages as TAS evolves to complete self sufficiency. From the TAS point of view, CHC's Humming Bird has been the "Albatross around their neck" from the The Rime of the Ancient Mariner.
As with both of my own divorces, there appears to be little love lost in the upcoming disassociation. Some things on the go from the various head sheds of late are not unlike self immolation. If one did not know better, it is almost as if there is now an intent to engineer a collapse in order to rebuild it from the ashes. Is the new logo for CHC going to be a Phoenix, or is it just going to be a Dead Duck? Maybe CHC will stagger on for a few months on the cash infusion from TAS's buyout of the CHC shares. Kind of like burning blankets to stay warm on a cold night. Works today, but what about tomorrow?
I believe they have a term in Newfoundland that might fit this situation "The arse is out of 'er b'ys!" If there is a recovery from the vortex ring state the Red Humming Bird has maneuvered itself into, it will be a long way off with more severe pain along the way. More than likely, a very hard landing, followed immediately by a dynamic rollover.
Meanwhile, the SLT will retain their golden parachutes.
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Add to the above, the delay of a major Shell contract in OZ for at least a year and the announcement of as many as 10 X 92 and 25 x 225 pilots being " stood down" ( home without pay) being another nail in the coffin. I'm sure CHC had that contract money already on their balance sheet for this year.....
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In Europe?
Figures for Norway year 2015 according to Regnskapstall.no
Chc Helikopter service: -172189000nok after tax.
Heli-One Leasing(Norway) AS: -33237000nok after tax.
Heli-One (Norway) AS: -944019000nok after tax.
Figures for Norway year 2015 according to Regnskapstall.no
Chc Helikopter service: -172189000nok after tax.
Heli-One Leasing(Norway) AS: -33237000nok after tax.
Heli-One (Norway) AS: -944019000nok after tax.
