State of the Industry
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There's a lot going down right now at Bristow.
"The Company is evaluating whether this material weakness in internal controls over financial reporting resulted in a misstatement in the Company’s financial statements included in the Annual Report on Form 10-K for the fiscal year ended March 31, 2018 and the impact on the financial statements of the Company as of December 31, 2018, including disclosures. The Company is specifically evaluating whether certain debt balances should be reclassified from long-term to short-term in those financial statements, whether related waivers can be obtained from lenders, if necessary, and the resulting impact on the assessment of the Company’s ability to continue as a going concern."
Bristow Group Inc. - News Release
"The Company is evaluating whether this material weakness in internal controls over financial reporting resulted in a misstatement in the Company’s financial statements included in the Annual Report on Form 10-K for the fiscal year ended March 31, 2018 and the impact on the financial statements of the Company as of December 31, 2018, including disclosures. The Company is specifically evaluating whether certain debt balances should be reclassified from long-term to short-term in those financial statements, whether related waivers can be obtained from lenders, if necessary, and the resulting impact on the assessment of the Company’s ability to continue as a going concern."
Bristow Group Inc. - News Release
http://www.ainonline.com/aviation-ne...-columbia-deal
Bristow Group broadly hinted on Monday that its next move could be bankruptcy. The company abruptly canceled an analyst conference call scheduled for this afternoon, formally ended its attempt to acquire Columbia Helicopters for $560 million, filed notification of late filing of latest quarterly and nine-month financial results with the U.S. Securities and Exchange Commission, and admitted “material weakness” in internal controls over financial reporting dating back at least two years.
In a statement, Bristow said, “The company is evaluating whether this material weakness in internal controls over financial reporting resulted in a misstatement in the company's financial statements included in the annual report on (SEC) Form 10-K for the fiscal year ended March 31, 2018, and the impact on the financial statements of the company as of December 31, 2018, including disclosures. The company is specifically evaluating whether certain debt balances should be reclassified from long-term to short-term in those financial statements, whether related waivers can be obtained from lenders, if necessary, and the resulting impact on the assessment of the company's ability to continue as a going concern.”
The helicopter services company did release “preliminary” financial results that indicated it lost at least $262.2 million for the nine months ending Dec. 31, 2018, and $85.94 million in the fourth quarter alone. Those losses, if confirmed, are up sharply—it sustained losses of $94.78 million and $8.274 million, respectively, in the same year-ago periods.
In announcing the collapse of the Columbia deal, Bristow Chairman Thomas Knudson said, "The decision to enter into a mutual termination of the purchase agreement was based on a number of developments following the entry into the agreement, which led both Bristow and Columbia to conclude that it was not possible to combine the two companies at this time.” Bristow has paid Columbia a $20 million termination fee. Bristow announced its intention to acquire Columbia in November, but revealed a month later that it was having difficulty closing the deal.
In a statement, Bristow said, “The company is evaluating whether this material weakness in internal controls over financial reporting resulted in a misstatement in the company's financial statements included in the annual report on (SEC) Form 10-K for the fiscal year ended March 31, 2018, and the impact on the financial statements of the company as of December 31, 2018, including disclosures. The company is specifically evaluating whether certain debt balances should be reclassified from long-term to short-term in those financial statements, whether related waivers can be obtained from lenders, if necessary, and the resulting impact on the assessment of the company's ability to continue as a going concern.”
The helicopter services company did release “preliminary” financial results that indicated it lost at least $262.2 million for the nine months ending Dec. 31, 2018, and $85.94 million in the fourth quarter alone. Those losses, if confirmed, are up sharply—it sustained losses of $94.78 million and $8.274 million, respectively, in the same year-ago periods.
In announcing the collapse of the Columbia deal, Bristow Chairman Thomas Knudson said, "The decision to enter into a mutual termination of the purchase agreement was based on a number of developments following the entry into the agreement, which led both Bristow and Columbia to conclude that it was not possible to combine the two companies at this time.” Bristow has paid Columbia a $20 million termination fee. Bristow announced its intention to acquire Columbia in November, but revealed a month later that it was having difficulty closing the deal.
You cannot raid the cookie jar but so many times before it goes empty on you.
Those management salaries, bonuses, and perks should have been directly tied to profitability and growth along with preservation of assets.
You pay Winners.....and tie a can to the tails of the losers.
Those management salaries, bonuses, and perks should have been directly tied to profitability and growth along with preservation of assets.
You pay Winners.....and tie a can to the tails of the losers.
Is there an up-to-date resource for showing who has what, where and with what which someone could direct me to?
One of those fancy maps with icons or just a simple list would do
Oil Company, Operator, Location, Aircraft Type, Number, Flight frequency/hours, Contract period, Remarks?
Remarks column could include whom previously had the contract or previous type......
Is this something HeliOffshore could help with as all the info is out there?
Happy to provide bandwidth if data is supplied.
One of those fancy maps with icons or just a simple list would do
Oil Company, Operator, Location, Aircraft Type, Number, Flight frequency/hours, Contract period, Remarks?
Remarks column could include whom previously had the contract or previous type......
Is this something HeliOffshore could help with as all the info is out there?
Happy to provide bandwidth if data is supplied.
I wouldn't think so EEDSL, it would be way to commercially sensitive and allow a roadmap to target contracts.
Imagine all those very smart BD people such a list would put out of a job! What you suggest is what they are meant to do!
Imagine all those very smart BD people such a list would put out of a job! What you suggest is what they are meant to do!
well, another layer of management devolved..........
we all know an element of the story.
Oil companies and Operators are keen to saturate the media with yet another contract win etc etc, or the fact that such and such aircraft has been repainted etc
Majority of info is in the 'public' domain already - its just collating it.
and when it comes to BD folk using the info, we all know that 'contracts' hold no sway; it's how cheap I can operate that attracts the 90-day clause.
we all know an element of the story.
Oil companies and Operators are keen to saturate the media with yet another contract win etc etc, or the fact that such and such aircraft has been repainted etc
Majority of info is in the 'public' domain already - its just collating it.
and when it comes to BD folk using the info, we all know that 'contracts' hold no sway; it's how cheap I can operate that attracts the 90-day clause.
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Yesterday's news and ensuing share price are a pretty good indicator of what's coming next, and it's coming soon. https://www.ainonline.com/aviation-n...ser-bankruptcy
- April 15, 2019, 8:12 PM In the strongest hint yet that bankruptcy is on the table, helicopter services company Bristow Group said on Monday that it has yet to complete its financial report for the quarter ended Dec. 31, 2018, intentionally missed a $12.5 million interest note payment due April 15, and “is working diligently with its financial and legal advisors to best position the company for the future, both financially and operationally,” according to new CEO L. Don Miller.
Bristow also said it has hired the firms of Houlihan Lokey and Alvarez & Marsal as its financial advisors and Baker Botts L.L.P. and Wachtell, Lipton, Rosen & Katz as legal advisors. These firms all have strong bankruptcy experience. Notably, Alvarez & Marsal was hired to manage the distressed Zohar funds used to finance Lynn Tilton’s Patriarch Partners and its stable of companies, including MD Helicopters, in 2016. Investment banking firm Houlihan Lokey is also advising PHI Inc. on its recent bankruptcy filing.
The company stressed it still had $202 million on hand in cash and available credit under its asset-backed revolving credit facility (ABL), down from $237 million at the end of last year. Concurrent with its statement on Monday, Bristow filed an 8-K form with the U.S. Securities and Exchange Commission (SEC). Publicly-traded companies are required to file an 8-K whenever they have “unscheduled material events or corporate events.”
In its 8-K filed Monday, Bristow disclosed its survival strategy of selling off assets and renegotiating with lenders might not succeed and that a Chapter 11 bankruptcy filing might be inevitable. “We cannot assure you that any of our strategies will yield sufficient funds to meet our ongoing liquidity needs,” the company wrote. “We and certain of our subsidiaries may elect to implement such a transaction (default) through Chapter 11.”
Following the 8-K filing and announcement late Monday afternoon, Bristow’s stock nosedived from $1.14 to $0.59 per share in after-hours trading. Bristow said its overdue quarterly financial report would not be filed until June 19 “subject to certain conditions.” The company said it is taking advantage of a 30-day grace period not to pay the $12.5 million senior note interest “as it continues to work on its overall financing arrangements.”
Bristow Flies Closer To Bankruptcy
by Mark Huber- April 15, 2019, 8:12 PM In the strongest hint yet that bankruptcy is on the table, helicopter services company Bristow Group said on Monday that it has yet to complete its financial report for the quarter ended Dec. 31, 2018, intentionally missed a $12.5 million interest note payment due April 15, and “is working diligently with its financial and legal advisors to best position the company for the future, both financially and operationally,” according to new CEO L. Don Miller.
Bristow also said it has hired the firms of Houlihan Lokey and Alvarez & Marsal as its financial advisors and Baker Botts L.L.P. and Wachtell, Lipton, Rosen & Katz as legal advisors. These firms all have strong bankruptcy experience. Notably, Alvarez & Marsal was hired to manage the distressed Zohar funds used to finance Lynn Tilton’s Patriarch Partners and its stable of companies, including MD Helicopters, in 2016. Investment banking firm Houlihan Lokey is also advising PHI Inc. on its recent bankruptcy filing.
The company stressed it still had $202 million on hand in cash and available credit under its asset-backed revolving credit facility (ABL), down from $237 million at the end of last year. Concurrent with its statement on Monday, Bristow filed an 8-K form with the U.S. Securities and Exchange Commission (SEC). Publicly-traded companies are required to file an 8-K whenever they have “unscheduled material events or corporate events.”
In its 8-K filed Monday, Bristow disclosed its survival strategy of selling off assets and renegotiating with lenders might not succeed and that a Chapter 11 bankruptcy filing might be inevitable. “We cannot assure you that any of our strategies will yield sufficient funds to meet our ongoing liquidity needs,” the company wrote. “We and certain of our subsidiaries may elect to implement such a transaction (default) through Chapter 11.”
Following the 8-K filing and announcement late Monday afternoon, Bristow’s stock nosedived from $1.14 to $0.59 per share in after-hours trading. Bristow said its overdue quarterly financial report would not be filed until June 19 “subject to certain conditions.” The company said it is taking advantage of a 30-day grace period not to pay the $12.5 million senior note interest “as it continues to work on its overall financing arrangements.”
In its 8-K filed Monday, Bristow disclosed its survival strategy of selling off assets and renegotiating with lenders might not succeed and that a Chapter 11 bankruptcy filing might be inevitable. “We cannot assure you that any of our strategies will yield sufficient funds to meet our ongoing liquidity needs,” the company wrote.[b] “We and certain of our subsidiaries may elect to implement such a transaction (default) through Chapter 11.”
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Surely offshore flying was hit hard by bad oil and "one trick" companies suffer. But in all honesty, realistic management knows that already when the times are still good and would make provisions. Whatever happened to that? It used to be quite normal... and back then people where in general less educated than today.
But isn't that the case with corporate culture in general? Profitable times tend to attract these certain personalities whose major interest in their job is seek to maximize personal benefit, and thus are prone to milk a company for fat salary packages and many other spendings on the management class; plus the cost of them not admitting having taken the wrong turn. Think new offices, expensive company cars, prestigious joint ventures only good for their own CV, all in all: a nonchalant, unreflected expectation that your employers business must provide you with not only a good income but a luxury lifestyle, and merely exists to fulfill your personal professional endeavours. Within those ranks, everybody feels free to grab what they can so nobody ever questions whether management is making sound decisions - they just confirm each other in being worth bonus after bonus and that its always a good time to have a new headquarter built in a triple A location. Since it is also perfectly normal for these people to jump ship when the well dries up, they don't know how to steer a business through rough waters - sticking it out loyally was never part of their plan, they just want to skim the cream wherever times are good at any given point.
Surely offshore flying was hit hard by bad oil and "one trick" companies suffer. But in all honesty, realistic management knows that already when the times are still good and would make provisions. Whatever happened to that? It used to be quite normal... and back then people where in general less educated than today.
Surely offshore flying was hit hard by bad oil and "one trick" companies suffer. But in all honesty, realistic management knows that already when the times are still good and would make provisions. Whatever happened to that? It used to be quite normal... and back then people where in general less educated than today.
AMEN! Brother....tell it!
There must be a Biz Management degree to be had off the back of such a fall from greatness?
”how I steered a profitable company through good times to bad”
”how I steered a profitable company through good times to bad”
Snatching Failure from the Jaws of Success!
If I taxied the Helicopter into a hangar, I’d likely be sacked and find myself unemployable.
If I managed to get the CEO’s position, and nose dived the company into bankruptcy, I’d likely get a bonus, then move on to bigger and better things.
It’s completely loopy.
If I managed to get the CEO’s position, and nose dived the company into bankruptcy, I’d likely get a bonus, then move on to bigger and better things.
It’s completely loopy.
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If I taxied the Helicopter into a hangar, I’d likely be sacked and find myself unemployable.
If I managed to get the CEO’s position, and nose dived the company into bankruptcy, I’d likely get a bonus, then move on to bigger and better things.
It’s completely loopy.
If I managed to get the CEO’s position, and nose dived the company into bankruptcy, I’d likely get a bonus, then move on to bigger and better things.
It’s completely loopy.
If future history books will be any good, they will identify our time as an era of systematic accountability diffusion in favor of a large global „soft skill“ class of fraudulent character, whose members enjoy de facto imputiny.
The further away your job is from this sphere, the less diffusion you will enjoy and instead be fully accountable. While I lived in Germany some years ago, there was a famous case of a working-poor shop assistant who took a return receipt for recycling bottles that a customer had forgotten at her cashier. It was worth 50 cents. She was fired for it and I think two courts confirmed the dismissal. Since that happened around the time of the financial crisis, her case became a proverbial in Germany for our understanding of accountability.
Accountability, now there's a novel thought.
A mob I used to work for regarded both accountability and regulatory compliance as "mandatory for staff and optional for management"
I wonder how some managers are able to keep a straight face with many of their pronouncements.
CC
A mob I used to work for regarded both accountability and regulatory compliance as "mandatory for staff and optional for management"
I wonder how some managers are able to keep a straight face with many of their pronouncements.
CC
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Krautwald. How eloquently you describe the scumbags who have systematically destroyed this business.
the language the they use beggars belief. “Cash and revolving assists worth $203m......err but we might have to go bankrupt”. Mistakes were made in how debt was accounted for????
its financial gobbledegook for incompetence.
the language the they use beggars belief. “Cash and revolving assists worth $203m......err but we might have to go bankrupt”. Mistakes were made in how debt was accounted for????
its financial gobbledegook for incompetence.