What's happening in CHC?
No comments about CHC's exit from Ch 11 in Feb next year? Judge seems to be very happy with the plan.
HeliHub.com CHC: Rising from the ashes of Chapter 11
HeliHub.com CHC: Rising from the ashes of Chapter 11
The market was never helped by an operator running at a clear loss – that in itself depressed the margins of others as they bid for business;
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Am I getting this right? CHC is borrowing another $300 million? That'll be the germ of the next bankruptcy then, I guess.
Seriously, I'm delighted to see CHC still alive and kicking, and on better financial footing, albeit not exactly debt-free. Not that that is even an option these days.
Now the oil price just needs to come back up again and some of us can get our job back!
Seriously, I'm delighted to see CHC still alive and kicking, and on better financial footing, albeit not exactly debt-free. Not that that is even an option these days.
Now the oil price just needs to come back up again and some of us can get our job back!
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The market was never helped by an operator running at a clear loss – that in itself depressed the margins of others as they bid for business;
A Chapter 11 bail out, further depresses the margins of others as they bid for business as CHC will emerge with what many would consider to be an unfair competitive advantage. If an operator was running at a clear loss then it is a pretty good indicator that there was probably too much capacity in the market place and rules of good competition policy suggest that the weakest should be allowed to fail leaving cheap assets and additional work for those that remain.
Survival of the fittest not saving of the failed?
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Max,
Surely it is not survival of the strongest (as against your weakest) ..... but rather survival of those more fitted to adapt to the dramatically changing environment. Commercial life does not deal in fairness ...... ?!
Surely it is not survival of the strongest (as against your weakest) ..... but rather survival of those more fitted to adapt to the dramatically changing environment. Commercial life does not deal in fairness ...... ?!
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Revolutionary : No that is not correct CHC is not borrowing 300 million, the new majority owner ( name unknown at this time) of CHC is investing the 300 million.
There should be almost no debt , the creditors are converting there debt for equity in the company ( about 1 billion is the figure I heard) and Milestone leasing will also become a part owner and has 150 million available for leasing or purchasing new aircraft. That gives 450 million they will have and virtually new debt when they emerge from bankruptcy protection. Pretty good starting point I would think.
Will be interesting to see what happens then, does the name change, brand change , aircraft colors change. I am betting there will be many new changes as the new company emerges from this process.
There should be almost no debt , the creditors are converting there debt for equity in the company ( about 1 billion is the figure I heard) and Milestone leasing will also become a part owner and has 150 million available for leasing or purchasing new aircraft. That gives 450 million they will have and virtually new debt when they emerge from bankruptcy protection. Pretty good starting point I would think.
Will be interesting to see what happens then, does the name change, brand change , aircraft colors change. I am betting there will be many new changes as the new company emerges from this process.
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twisted wrench, thanks, looks like CHC will be in relatively good shape financially when all is said and done. That still leaves the very good points brought up in the HeliHub article on where to go next; Mr. Fessenden will have his hands full but at least he's got some good partners in his corner, including his former employer.
A refreshing change from the previous gentleman at the helm; he never brought anything to the table, except that the company all of a sudden was awash in Lenovo products, many of them unneeded.
A refreshing change from the previous gentleman at the helm; he never brought anything to the table, except that the company all of a sudden was awash in Lenovo products, many of them unneeded.
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Fit like min?
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Not quite the same view in this article.
CHC will be badly hit by the loss of the Apache contract. Looking back through CHC's flight history on their website, Apache flights accounted for 27% of CHC’s Aberdeen flights in December 2016 and 17% of CHC’s UK wide North Sea flights during the same period.
The move is expected to have a dramatic impact on CHC’s UK operations and further deepen the on-going financial issues facing CHC Group. It is unlikely the organisation will be able to secure enough new work to allow operations to continue as normal after the contract expires and CHC will be forced to look at measures to offset the loss of revenue.
The move is expected to have a dramatic impact on CHC’s UK operations and further deepen the on-going financial issues facing CHC Group. It is unlikely the organisation will be able to secure enough new work to allow operations to continue as normal after the contract expires and CHC will be forced to look at measures to offset the loss of revenue.
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Quote..... "This accounts for less than a fifth of its business"
Wow, things must be rosy if you are not worried about losing around 20% of your business.........
Wow, things must be rosy if you are not worried about losing around 20% of your business.........
The info I heard is that Apache refused to get specialist advice (they don't have an air advisor) and were only interested in whichever operator spoke to them last. BRS seem to have filled that gap but Apache have a reputation for not paying that well so this might be a case of BRS picking up market share but not profit.
Most metrics would have the 175 very slightly ahead of the 189 on technical assessment so obviously something to consider if BRs do win it with a 189. As Mitchaa says, Airbus have a reputation issue.
Most metrics would have the 175 very slightly ahead of the 189 on technical assessment so obviously something to consider if BRs do win it with a 189. As Mitchaa says, Airbus have a reputation issue.
