State of the Industry
Thread Starter
Join Date: Oct 2002
Location: All over the place
Posts: 231
Likes: 0
Received 0 Likes
on
0 Posts
A commentary from Era on the current situation, maybe opening the door to their next direction?. If you have been following what is happening with Anadarko, then you might perceive that Era fears they may follow everyone else down a dark hole.
https://www.verticalmag.com/news/era...consolidation/
The president and CEO of offshore transport giant Era has said the current industry structure in the offshore helicopter business is not sustainable and is “in dire need” of consolidation.
An Era-operated Leonardo AW189 flies offshore over the Gulf of Mexico. Dan Megna PhotoAdvertisement
The remarks from Chris Bradshaw were made in a letter to shareholders within the company’s annual report, released April 24, in which he added that Era is “well-positioned” to take part in consolidation opportunities.
His comments follow the Chapter 11 bankruptcy filings of fellow offshore specialists CHC and PHI, and leasing company Waypoint.
“Those who follow the offshore helicopter business understand that the current industry structure is not sustainable, with multiple helicopter operators and leasing companies having already filed for bankruptcy protection and others expected to follow suit shortly,” said Bradshaw.
He said a simple restructuring of debt is unlikely to address “the fundamental issues at play” — and may in fact only lead to a repeating cycle of restructuring.
“In our view, the offshore helicopter industry is in dire need of consolidation, amongst both the operators and the lessors,” said Bradshaw. “Consolidation will not only address the excess capacity in the industry, but will also facilitate better absorption of the significant fixed costs required to run an air carrier.”
He said a combination of any two of the three large deepwater helicopter operators in the Gulf of Mexico (PHI, Bristow and Era), would likely result in cost savings that would create significant value for their stakeholders.
“We have positioned Era such that the company is secure in a stand-alone scenario, despite the challenging industry conditions, and also well-positioned
to participate in value-accretive consolidation opportunities, should they become actionable,” he said.
Era’s financial results revealed a profit of $13.5 million in 2018, compared to a loss of $28.6 million the previous year. However, the 2018 figures included $42 million from Airbus Helicopters as part of a settlement of a lawsuit related to Era’s purchase of 11 H225 Super Pumas.
“We have experienced many rainy days over the last four-and-a-half years, but our business and balance sheet remain strong,” said Bradshaw. However, he noted that Chevron’s recent agreement to acquire Anadarko Petroleum Corp., a company that accounted for about 30 percent of Era’s revenues in 2018, is a cause of uncertainty.
“We believe the implications for the combined company’s helicopter transport needs will not be known until later in the integration process,” said Bradshaw. “At this time, it is too early for us to speculate on whether a transaction will have a positive, negative or neutral impact on our business.”
https://www.verticalmag.com/news/era...consolidation/
Era CEO says offshore helicopter industry is ‘in dire need’ of consolidation
Posted on April 26, 2019 by Oliver JohnsonThe president and CEO of offshore transport giant Era has said the current industry structure in the offshore helicopter business is not sustainable and is “in dire need” of consolidation.
An Era-operated Leonardo AW189 flies offshore over the Gulf of Mexico. Dan Megna PhotoAdvertisementThe remarks from Chris Bradshaw were made in a letter to shareholders within the company’s annual report, released April 24, in which he added that Era is “well-positioned” to take part in consolidation opportunities.His comments follow the Chapter 11 bankruptcy filings of fellow offshore specialists CHC and PHI, and leasing company Waypoint.
“Those who follow the offshore helicopter business understand that the current industry structure is not sustainable, with multiple helicopter operators and leasing companies having already filed for bankruptcy protection and others expected to follow suit shortly,” said Bradshaw.
He said a simple restructuring of debt is unlikely to address “the fundamental issues at play” — and may in fact only lead to a repeating cycle of restructuring.
“In our view, the offshore helicopter industry is in dire need of consolidation, amongst both the operators and the lessors,” said Bradshaw. “Consolidation will not only address the excess capacity in the industry, but will also facilitate better absorption of the significant fixed costs required to run an air carrier.”
He said a combination of any two of the three large deepwater helicopter operators in the Gulf of Mexico (PHI, Bristow and Era), would likely result in cost savings that would create significant value for their stakeholders.
“We have positioned Era such that the company is secure in a stand-alone scenario, despite the challenging industry conditions, and also well-positioned
to participate in value-accretive consolidation opportunities, should they become actionable,” he said.
Era’s financial results revealed a profit of $13.5 million in 2018, compared to a loss of $28.6 million the previous year. However, the 2018 figures included $42 million from Airbus Helicopters as part of a settlement of a lawsuit related to Era’s purchase of 11 H225 Super Pumas.
“We have experienced many rainy days over the last four-and-a-half years, but our business and balance sheet remain strong,” said Bradshaw. However, he noted that Chevron’s recent agreement to acquire Anadarko Petroleum Corp., a company that accounted for about 30 percent of Era’s revenues in 2018, is a cause of uncertainty.
“We believe the implications for the combined company’s helicopter transport needs will not be known until later in the integration process,” said Bradshaw. “At this time, it is too early for us to speculate on whether a transaction will have a positive, negative or neutral impact on our business.”
Thread Starter
Join Date: Oct 2002
Location: All over the place
Posts: 231
Likes: 0
Received 0 Likes
on
0 Posts
https://www.flightglobal.com/news/ar...ow-res-457851/
Activist shareholder Global Value Investment (GVIC) has drawn up an action plan for beleaguered Bristow Group – including disposing of two fixed-wing airlines – in a bid to stave off Chapter 11 bankruptcy protection.
Offshore helicopter specialist Bristow warned on 16 April that it had appointed advisers to explore restructuring options aimed at reducing its debt load, including Chapter 11, which would effectively wipe out several classes of investor.
GVIC has previously called for the removal of four Bristow board members, which it says have overseen "years of mismanagement" but is now pressing for urgent action to stave off Chapter 11, a move it argues is not in the interest of shareholders.
Under a three-pronged "operational plan", to be presented to Texas-based Bristow in the week of 6 May, GVIC would sell unprofitable or idle assets, aggressively cut costs and pay down or restructure debts.
Key assets for disposal include Airnorth and Eastern Airways, based in Australia and the UK respectively, which are both forecast to be negative on an earnings before interest, taxes, depreciation and amortisation (EBITDA) basis this year.
Bristow acquired both carriers to feed its helicopter operations, with limited success. GVIC believes it can attract buyers for the pair, to transform them into "regular scheduled airlines rather than running them on an industrial helicopter aviation model", says J P Geygan, GVIC vice-president.
"We have had conversations with a fixed-wing operator that was bewildered how inefficiently these airlines have been operated,” says Jeff Geygan, president and chief executive of GVIC.
Additionally, GVIC will propose that Bristow sell its 16-strong fleet of idled Airbus Helicopters H225s, which it believes can generate $80 million or upwards. These helicopters have been out of service for three years, with the operator making no attempt to dispose of them, says J P Geygan.
GVIC believes that with a strengthening of the balance sheet and repayment or renegotiation of its debts, Bristow's debt-to-EDITDA ratio can be cut to at least 6:1, down from about 12:1 at present.
In addition, GVIC says that “change in the boardroom and a change of management” is urgently required.
Former chief financial officer Don Miller was appointed as chief executive in February following the departure of predecessor Jonathan Baliff.
However, that appointment has been roundly criticised by GVIC, given Miller's oversight of the company's finances during a period in which Bristow has been unable to file its quarterly earnings.
"It is confounding to us that [Bristow] could not have found anyone better to be CEO," says Jeff Geygan.
He thinks there are numerous candidates – including GVIC's proposed board member Sten Gustafson – with industry experience who would "love to jump on board here" as chief executive.
Jeff Geygan says other shareholders have been "100% favourable" to its strategy, but "the company has remained silent in terms of communicating with us".
GVIC believes Bristow could file for Chapter 11 protection as early as 10 May, or around 16 May, when a $12.5m interest payment on its debt is due.
"We are 100% committed to defending the rights of equity holders in this situation; our plan would benefit customers, vendors, suppliers and employees as well," says J P Geygan.
GVIC owns 245,950 shares in Bristow, with a further 17,205 owned by executives. Shares have been trading at around $0.50 for the past month.
Although rivals CHC Helicopter and PHI have both entered Chapter 11 over the past three years, GVIC rejects any comparison, arguing that Bristow's circumstances are different.
Some past history and background.
https://www.bloomberg.com/research/s...estment%20Inc.
See Board Relationships51--
And after leaving Era, CHC.
CHC Group Announces New Management Structure | Collective Magazine
I'll let you fill in the blanks. With the current price of Bristow, I could pay cash right now to purchase equivalent equity that CGIV has in Bristow. If control of the company was taken over by an outside group and didn't file bankruptcy - well, there's a thing!
Activist shareholder Global Value Investment (GVIC) has drawn up an action plan for beleaguered Bristow Group – including disposing of two fixed-wing airlines – in a bid to stave off Chapter 11 bankruptcy protection.
Offshore helicopter specialist Bristow warned on 16 April that it had appointed advisers to explore restructuring options aimed at reducing its debt load, including Chapter 11, which would effectively wipe out several classes of investor.
GVIC has previously called for the removal of four Bristow board members, which it says have overseen "years of mismanagement" but is now pressing for urgent action to stave off Chapter 11, a move it argues is not in the interest of shareholders.
Under a three-pronged "operational plan", to be presented to Texas-based Bristow in the week of 6 May, GVIC would sell unprofitable or idle assets, aggressively cut costs and pay down or restructure debts.
Key assets for disposal include Airnorth and Eastern Airways, based in Australia and the UK respectively, which are both forecast to be negative on an earnings before interest, taxes, depreciation and amortisation (EBITDA) basis this year.
Bristow acquired both carriers to feed its helicopter operations, with limited success. GVIC believes it can attract buyers for the pair, to transform them into "regular scheduled airlines rather than running them on an industrial helicopter aviation model", says J P Geygan, GVIC vice-president.
"We have had conversations with a fixed-wing operator that was bewildered how inefficiently these airlines have been operated,” says Jeff Geygan, president and chief executive of GVIC.
Additionally, GVIC will propose that Bristow sell its 16-strong fleet of idled Airbus Helicopters H225s, which it believes can generate $80 million or upwards. These helicopters have been out of service for three years, with the operator making no attempt to dispose of them, says J P Geygan.
GVIC believes that with a strengthening of the balance sheet and repayment or renegotiation of its debts, Bristow's debt-to-EDITDA ratio can be cut to at least 6:1, down from about 12:1 at present.
In addition, GVIC says that “change in the boardroom and a change of management” is urgently required.
Former chief financial officer Don Miller was appointed as chief executive in February following the departure of predecessor Jonathan Baliff.
However, that appointment has been roundly criticised by GVIC, given Miller's oversight of the company's finances during a period in which Bristow has been unable to file its quarterly earnings.
"It is confounding to us that [Bristow] could not have found anyone better to be CEO," says Jeff Geygan.
He thinks there are numerous candidates – including GVIC's proposed board member Sten Gustafson – with industry experience who would "love to jump on board here" as chief executive.
Jeff Geygan says other shareholders have been "100% favourable" to its strategy, but "the company has remained silent in terms of communicating with us".
GVIC believes Bristow could file for Chapter 11 protection as early as 10 May, or around 16 May, when a $12.5m interest payment on its debt is due.
"We are 100% committed to defending the rights of equity holders in this situation; our plan would benefit customers, vendors, suppliers and employees as well," says J P Geygan.
GVIC owns 245,950 shares in Bristow, with a further 17,205 owned by executives. Shares have been trading at around $0.50 for the past month.
Although rivals CHC Helicopter and PHI have both entered Chapter 11 over the past three years, GVIC rejects any comparison, arguing that Bristow's circumstances are different.
Some past history and background.
https://www.bloomberg.com/research/s...estment%20Inc.
Sten L. Gustafson
President and Director, Seacor Overseas Investment Inc.AgeTotal Calculated CompensationThis person is connected to 3 Board Members in 3 organization across 5 different industries.See Board Relationships51--
Background
Mr. Sten L. Gustafson has been Chairman of the Board at Golden Energy Offshore Services AS since February 2018. He served as the Chief Executive Officer of Era Helicopters, LLC. Mr. Gustafson serves as the President at Seacor Overseas Investment Inc. He served as the Chief Executive Officer of Era Group Inc. from April 1, 2012 to August 29, 2014. He served as Head of Energy for Americas of Deutsche Bank AG since June 2010. Mr. Gustafson served as a Managing Director of Global Oilfield Services Practice at Deutsche Bank AG since March 2009 and was responsible to develop DB's global oilfield services practice. Mr. Gustafson served as Global Head of Oilfield Services at UBS' Energy Investment Banking Group. During his banking career, Mr. Gustafson advised a wide range of energy clients in numerous strategic, debt and equity transactions around the world. Mr. Gustafson serves as a Director of Seacor Overseas Investment Inc. He serves as a Director of Era Helicopters, LLC. and has been its Director of Era Group Inc., since November 2012. Mr. Gustafson graduated from Rice University with a bachelor's degree in English and received his law degree from the University of Houston.And after leaving Era, CHC.
CHC Group Announces New Management Structure | Collective Magazine
I'll let you fill in the blanks. With the current price of Bristow, I could pay cash right now to purchase equivalent equity that CGIV has in Bristow. If control of the company was taken over by an outside group and didn't file bankruptcy - well, there's a thing!
Thread Starter
Join Date: Oct 2002
Location: All over the place
Posts: 231
Likes: 0
Received 0 Likes
on
0 Posts
Here it comes!
https://www.streetinsider.com/SEC+Fi.../15466515.html
And the response (and more) fron GVIC.
https://www.prnewswire.com/news-rele...300845604.html
https://www.streetinsider.com/SEC+Fi.../15466515.html
And the response (and more) fron GVIC.
https://www.prnewswire.com/news-rele...300845604.html
Here it comes!
https://www.streetinsider.com/SEC+Fi.../15466515.html
And the response (and more) fron GVIC.
https://www.prnewswire.com/news-rele...300845604.html
https://www.streetinsider.com/SEC+Fi.../15466515.html
And the response (and more) fron GVIC.
https://www.prnewswire.com/news-rele...300845604.html
They are astonishing remuneration packages considering the dire straights they are in, although reflective of the US/Europe divide in corporate salaries. Potentially, if he achieves 200% target bonus award, Don Miller would be on around $9 million just in bonuses! That's pretty much the same as the total my CEO earns - of a (European) company somewhat larger and more profitable!
Looks to me like they are trying to take as much as they can before the ship sinks, "Aprčs nous, le déluge!"
Join Date: Dec 2006
Location: UK and MALTA
Age: 61
Posts: 1,297
Likes: 0
Received 18 Likes
on
4 Posts
Most surprising is the "Retention" payments. Have a large wad so you don't leave a sinking ship that probably will sink anyway and therefore you get to keep the wad cos we wont blame you for the sinking cos we is all in on the scam together. I hope every Bristow's employee gets to read those notices.
How can this, and the "Performance" bonus's be nothing other than corporate theft!
How can this, and the "Performance" bonus's be nothing other than corporate theft!
GVIC is not as smart as they think they are. Anyone who thinks Air North is worth $70m is dreaming.
It’s owned turboprops (Metros and EMB120s) are 30 years old and can’t be crewed in the current climate with Air North pay and conditions so remain mostly parked against the fence.
The rest of Air North comprises 5x leased EMB 170s with owned engines. Bristow paid $30m+ at peak of the market in Jan 2015. Air North is the only airline in Oz operating Embraer 170s. Air North has some very thin routes unlikely to be of interest to any competitors.
It’s owned turboprops (Metros and EMB120s) are 30 years old and can’t be crewed in the current climate with Air North pay and conditions so remain mostly parked against the fence.
The rest of Air North comprises 5x leased EMB 170s with owned engines. Bristow paid $30m+ at peak of the market in Jan 2015. Air North is the only airline in Oz operating Embraer 170s. Air North has some very thin routes unlikely to be of interest to any competitors.
How can this, and the "Performance" bonus's be nothing other than corporate theft!
P3
Join Date: May 2019
Location: The Windy Isle
Posts: 2
Likes: 0
Received 0 Likes
on
0 Posts
The industry is in the midst of a bounce back or somewhat of a recovery in my opinion. Offshore is coming back online. North Sea is getting new recuits. Wildfires have been exceptionally busy of recent. As a resultant, there is a lot of power pole survey to happen in the ravaged areas (look at California and Canada). The Middle East is opening back up. Not to mention the numbers of people leaving for planes.
Join Date: Feb 2019
Location: United States
Posts: 6
Likes: 0
Received 0 Likes
on
0 Posts
The industry is in the midst of a bounce back or somewhat of a recovery in my opinion. Offshore is coming back online. North Sea is getting new recuits. Wildfires have been exceptionally busy of recent. As a resultant, there is a lot of power pole survey to happen in the ravaged areas (look at California and Canada). The Middle East is opening back up. Not to mention the numbers of people leaving for planes.
Even if they did want to take take advantage of the better corners of the helicopter world right now, their fleets largely are configured for offshore work, and they don’t have the capital or the risk appetite for getting into utility, fire fighting, heliskiing, and all the rest.
Senior management at all the majors are from the banking sector or related areas, and probably have friends back in the equity firms waiting to give them a soft landing after their adventure into aviation.
Join Date: Feb 2019
Location: United States
Posts: 6
Likes: 0
Received 0 Likes
on
0 Posts
100% agree. They know the ship(s) is going down, and they are either too incompetent to fix it, realized it too late, or don’t care anymore and are just sucking the companies dry for all the money they can before jumping back to their world of finance.
Join Date: May 2019
Location: The Windy Isle
Posts: 2
Likes: 0
Received 0 Likes
on
0 Posts
Respectfully, you’re dreaming. The mom and pop operators are the ones reaping the benefits of the utility and fire work, since Era, CHC, and the Bristows of the world have little interest in diversifying.
Even if they did want to take take advantage of the better corners of the helicopter world right now, their fleets largely are configured for offshore work, and they don’t have the capital or the risk appetite for getting into utility, fire fighting, heliskiing, and all the rest.
Senior management at all the majors are from the banking sector or related areas, and probably have friends back in the equity firms waiting to give them a soft landing after their adventure into aviation.
Thread Starter
Join Date: Oct 2002
Location: All over the place
Posts: 231
Likes: 0
Received 0 Likes
on
0 Posts
A legal viewpoint of the current happenings in the helicopter world.
https://www.law.com/newyorklawjourna...20190429195201
https://www.law.com/newyorklawjourna...20190429195201
Thread Starter
Join Date: Oct 2002
Location: All over the place
Posts: 231
Likes: 0
Received 0 Likes
on
0 Posts
A very interesting development in the PHI Chapter 11 case.
https://www.bloomberg.com/news/artic...nkruptcy-judge
Steven Church
and
Jeremy HillJune 5, 2019, 7:43 AM PDT Updated on June 6, 2019, 9:52 AM PDT
A PHI helicopter
Photographer: John Terhune/Journal and Courier via AP Photo
PHI Inc.’s unsecured creditors pulled off the bankruptcy equivalent of a palace coup during court-supervised settlement talks.
After just one day of mediation in front of a Texas bankruptcy judge, PHI’s chairman, majority shareholder and chief executive, Al A. Gonsoulin, lost his bid to retain control of the company, which provides helicopters for oil drillers and emergency medical providers.
Under the deal filed last night in federal court in Dallas, the official committee of unsecured creditors will drop its opposition to PHI’s reorganization plan, as well as the panel’s effort to sue company insiders, in exchange for 100% ownership, and Gonsoulin’s retirement.
That leaves a group of minority shareholders as the main opponent left to the reorganization proposal.
“This is a terrific result so far,” U.S. Bankruptcy Judge Harlin Hale said Wednesday during the hearing. “We have another piece of the puzzle with the equity committee, but I could not be more pleased.”
An attorney for Gonsoulin declined to comment.“This settlement represents a crucial and positive turning point in the case,” Lance Bospflug, PHI’s president and chief operating officer said in an emailed statement. “While we have work to do to satisfy the terms of the agreement, we continue to believe that our Chapter 11 filing and plan of reorganization represent the best course of action to address PHI’s matured debt and strengthen our balance sheet, while positioning the company for continued leadership.”
Unsecured creditors fought PHI for months in bankruptcy court by forcing changes to a management incentive plan that pays millions of dollars to seven executives, accusing insiders of being involved in a loan that was actually a fraudulent transfer and seeking to strip the company of its exclusive right to reorganize.
Before the mediation, PHI had insisted that Gonsoulin be allowed to swap the $130 million loan he made to the company for a new equity stake, which would have allowed him to retain his ownership while his fellow stockholders saw their interest canceled.
Instead, Gonsoulin will be paid $132.5 million in cash and must retire and sign a contract not to compete with PHI or to make any disparaging comments about the company for three years. Gonsoulin’s retirement won’t occur until PHI’s bankruptcy plan takes effect, according to the term sheet.
Unsecured creditors will get ownership of the company and current stockholders, including Gonsoulin, will have their shares canceled. Gonsoulin owns more than 70% of the pre-petition voting shares in PHI, court papers show.
“We can see a broad path to” ending PHI’s bankruptcy, creditor committee lawyer Dunne said in court.
PHI filed for bankruptcy in March amid struggles across the helicopter transportation industry in the wake of declining energy prices. PHI’s filing came minutes before the maturity of $500 million in unsecured notes.
Unsecured creditors have battled the company in court through various motions and objections, arguing PHI should have filed for Chapter 11 as early as 2018, and that Gonsoulin’s loan should have been recharacterized as equity because the terms were too sweet.
The company expects to emerge from bankruptcy in late summer, according to a company statement.
The case is: PHI Inc., 19-30923, U.S. Bankruptcy Court, Northern District of Texas (Dallas)
https://www.bloomberg.com/news/artic...nkruptcy-judge
Creditors Oust Helicopter Company’s CEO in Bankruptcy Coup
BySteven Church
and
Jeremy HillJune 5, 2019, 7:43 AM PDT Updated on June 6, 2019, 9:52 AM PDT
- Low-ranking creditors use court mediation to take ownership
- Proposed reorganization pays CEO cash, strips him of stock
A PHI helicopterPhotographer: John Terhune/Journal and Courier via AP Photo
PHI Inc.’s unsecured creditors pulled off the bankruptcy equivalent of a palace coup during court-supervised settlement talks.
After just one day of mediation in front of a Texas bankruptcy judge, PHI’s chairman, majority shareholder and chief executive, Al A. Gonsoulin, lost his bid to retain control of the company, which provides helicopters for oil drillers and emergency medical providers.
Under the deal filed last night in federal court in Dallas, the official committee of unsecured creditors will drop its opposition to PHI’s reorganization plan, as well as the panel’s effort to sue company insiders, in exchange for 100% ownership, and Gonsoulin’s retirement.
That leaves a group of minority shareholders as the main opponent left to the reorganization proposal.
“This is a terrific result so far,” U.S. Bankruptcy Judge Harlin Hale said Wednesday during the hearing. “We have another piece of the puzzle with the equity committee, but I could not be more pleased.”
An attorney for Gonsoulin declined to comment.“This settlement represents a crucial and positive turning point in the case,” Lance Bospflug, PHI’s president and chief operating officer said in an emailed statement. “While we have work to do to satisfy the terms of the agreement, we continue to believe that our Chapter 11 filing and plan of reorganization represent the best course of action to address PHI’s matured debt and strengthen our balance sheet, while positioning the company for continued leadership.”
Unsecured creditors fought PHI for months in bankruptcy court by forcing changes to a management incentive plan that pays millions of dollars to seven executives, accusing insiders of being involved in a loan that was actually a fraudulent transfer and seeking to strip the company of its exclusive right to reorganize.
Bankruptcy Breakthrough
The breakthrough came after one day in mediation on Friday with U.S. Bankruptcy Judge David Jones, said Dennis Dunne, a lawyer for the unsecured creditor committee.Before the mediation, PHI had insisted that Gonsoulin be allowed to swap the $130 million loan he made to the company for a new equity stake, which would have allowed him to retain his ownership while his fellow stockholders saw their interest canceled.
Instead, Gonsoulin will be paid $132.5 million in cash and must retire and sign a contract not to compete with PHI or to make any disparaging comments about the company for three years. Gonsoulin’s retirement won’t occur until PHI’s bankruptcy plan takes effect, according to the term sheet.
Unsecured creditors will get ownership of the company and current stockholders, including Gonsoulin, will have their shares canceled. Gonsoulin owns more than 70% of the pre-petition voting shares in PHI, court papers show.
“We can see a broad path to” ending PHI’s bankruptcy, creditor committee lawyer Dunne said in court.
PHI filed for bankruptcy in March amid struggles across the helicopter transportation industry in the wake of declining energy prices. PHI’s filing came minutes before the maturity of $500 million in unsecured notes.
Unsecured creditors have battled the company in court through various motions and objections, arguing PHI should have filed for Chapter 11 as early as 2018, and that Gonsoulin’s loan should have been recharacterized as equity because the terms were too sweet.
The company expects to emerge from bankruptcy in late summer, according to a company statement.
The case is: PHI Inc., 19-30923, U.S. Bankruptcy Court, Northern District of Texas (Dallas)
Thread Starter
Join Date: Oct 2002
Location: All over the place
Posts: 231
Likes: 0
Received 0 Likes
on
0 Posts
https://www.thestar.com.my/business/...t-in-weststar/
KUALA LUMPUR (Bloomberg): KKR & Co is nearing a deal to exit part of its stake in Weststar Aviation Services Sdn Bhd, Southeast Asia’s biggest provider of helicopters for the offshore energy industry, people with knowledge of the matter said.
The private equity firm is in advanced talks to sell a portion of its 40% Weststar holding to the company’s controlling shareholder, businessman Tan Sri Syed Azman Syed Ibrahim, according to the people.
Weststar could be valued at about US$2bil including debt, the people said, asking not to be identified because the information is private.
KKR, which has been an investor in Weststar since 2013, has seen delays to its attempts to sell out after a global slowdown in the energy industry hurt demand for oilfield services. Weststar started preparations the next year for an initial public offering in Kuala Lumpur, though the plan was later put on hold.
After selling part of its stake to Syed Azman, KKR will consider options for its remaining holding over the next year, the people said. It could opt to revive an IPO of Weststar or sell the rest of its stake to Syed Azman or another investor, the people said.
No final decisions have been made, and there’s no certainty the discussions will lead to a transaction, the people said.
A spokesman for Weststar confirmed Syed Azman is in talks with KKR on its stake in the Malaysian company and declined to comment further. A representative from KKR declined to comment.
KKR bought the stake in Weststar, which was its first Malaysian investment, for about US$200mil. Since then, Weststar has nearly doubled its revenue and expanded into new markets including the Middle East, Africa and Timor-Leste, according to the people.
The company plans to add around 10 more helicopters to its fleet, from about 30 currently, and is diversifying into areas such as search and rescue operations and emergency medical services to reduce its reliance on the energy industry, the people said.
Besides Weststar, KKR is also exploring a potential sale of Goodpack Ltd, a Singaporean provider of intermediate bulk containers that could fetch at least US$2bil, people familiar with the matter said earlier this month.
Read more at https://www.thestar.com.my/business/...7d170eYlkQs.99
KKR nears partial exit from Weststar
- CORPORATE NEWS
- Wednesday, 19 Jun 2019
7:23 PM MYT
KUALA LUMPUR (Bloomberg): KKR & Co is nearing a deal to exit part of its stake in Weststar Aviation Services Sdn Bhd, Southeast Asia’s biggest provider of helicopters for the offshore energy industry, people with knowledge of the matter said.The private equity firm is in advanced talks to sell a portion of its 40% Weststar holding to the company’s controlling shareholder, businessman Tan Sri Syed Azman Syed Ibrahim, according to the people.
Weststar could be valued at about US$2bil including debt, the people said, asking not to be identified because the information is private.
KKR, which has been an investor in Weststar since 2013, has seen delays to its attempts to sell out after a global slowdown in the energy industry hurt demand for oilfield services. Weststar started preparations the next year for an initial public offering in Kuala Lumpur, though the plan was later put on hold.
After selling part of its stake to Syed Azman, KKR will consider options for its remaining holding over the next year, the people said. It could opt to revive an IPO of Weststar or sell the rest of its stake to Syed Azman or another investor, the people said.
No final decisions have been made, and there’s no certainty the discussions will lead to a transaction, the people said.
A spokesman for Weststar confirmed Syed Azman is in talks with KKR on its stake in the Malaysian company and declined to comment further. A representative from KKR declined to comment.
KKR bought the stake in Weststar, which was its first Malaysian investment, for about US$200mil. Since then, Weststar has nearly doubled its revenue and expanded into new markets including the Middle East, Africa and Timor-Leste, according to the people.
The company plans to add around 10 more helicopters to its fleet, from about 30 currently, and is diversifying into areas such as search and rescue operations and emergency medical services to reduce its reliance on the energy industry, the people said.
Besides Weststar, KKR is also exploring a potential sale of Goodpack Ltd, a Singaporean provider of intermediate bulk containers that could fetch at least US$2bil, people familiar with the matter said earlier this month.
Read more at https://www.thestar.com.my/business/...7d170eYlkQs.99
Thread Starter
Join Date: Oct 2002
Location: All over the place
Posts: 231
Likes: 0
Received 0 Likes
on
0 Posts
https://www.bizjournals.com/houston/...s-general.html
Struggling helicopter co. hires GE exec as general counsel amid bankruptcy, litigation
Houston-based Bristow Group Inc., which filed for bankruptcy protection in May and is facing investor lawsuits, has hired a new in-house lawyer.
COMPANIES IN THIS ARTICLE
Bristow Group Inc.
Houston, TX
Airlines/Aviation
$1.4BRevenue
4,058Employees
See full profile
By Olivia Pulsinelli and Chris Mathews – Houston Business Journal
Jul 8, 2019, 2:44pm EDT
Houston-based Bristow Group Inc., which filed for bankruptcy protection in May and is facing some related legal issues, has hired a new in-house lawyer.
Victoria Lazar has been appointed senior vice president, general counsel and corporate secretary, the Houston-based helicopter company announced July 1. She previously spent more than 11 years with Boston-based General Electric Co. (NYSE: GE) in Houston, most recently as general counsel of mergers and acquisitions. She also was associate general counsel for GE Oil & Gas and led the merger with Houston-based Baker Hughes Inc. to form Baker Hughes, A GE Company (NYSE: GE).
Before GE, Lazar served in various roles at Electronic Data Systems Corp., now DXC Technology, from 1996 to 2008, and she was an associate at Houston-based Baker Botts LLP from 1990 to 1996. She has a J.D. from the University of Chicago Law School and a Bachelor of Arts in government from Cornell University.
It was not immediately clear whom Lazar is replacing. According to documents filed with the U.S. Securities and Exchange Commission, Timothy J. Knapppreviously held those roles from September 2017 until at least early August 2018.
"Victoria's extensive experience in mergers and acquisitions, market transactions and integrations will be an asset to Bristow as we emerge from our financial restructuring and look to address some of the industry's biggest challenges like market consolidation, diversification and market oversupply," L. Don Miller, president and CEO of Bristow, said in the release.
The change comes at a challenging time for Bristow, though the company has been making progress in some areas. The company listed total assets of $2.86 billion and total debts of nearly $1.89 billion, as well as between 1,000 and 5,000 creditors, when it filed for Chapter 11 bankruptcy protection in May. The New York Stock Exchange began the process to delist Bristow's common stock just days later.
When the Chapter 11 filing was announced, Bristow said it had entered into a restructuring support agreement with “the overwhelming majority” of the parent company’s senior secured noteholders. On June 28, the company announced it entered into an amended and restated agreement with certain secured and unsecured noteholders, who have also reached an updated agreement to fund a new $150 million debtor-in-possession facility. Both agreements are subject to the approval of the bankruptcy court.
"We have successfully brought together holders of both our secured notes and our unsecured notes to achieve a meaningful milestone in our reorganization, and one that positions Bristow for a timely emergence from Chapter 11," Miller said in the June 28 press release. "Upon completion of this recapitalization, we will have a much stronger balance sheet with significantly lower debt levels and improved liquidity."
However, Bristow is also involved in securities litigation and other legal matters, the company recently disclosed in some financial reports filed with the SEC. One complaint filed on June 9 with the Delaware District Court alleges that Bristow executives, board directors and former executives acted in concert with one another to allow “a course of conduct by omission and commission that was designed to and did mislead the investment public,” according to the original complaint. Plaintiffs allege that a number of statements from Bristow in press releases and public filings were materially false. The complaint goes on to claim that the director defendants “either knew or should have known of the false and misleading statements that were issued on [Bristow’s] behalf and took no steps in a good faith effort to prevent or remedy that situation.”
The complaint also alleges that Bristow's board of director defendants wasted corporate assets by, among other actions, paying excessive compensation, bonuses, termination payments and awarding self-interested stock options to certain executive officers and directors. On May 3, Bristow issued over $2 million in executive retention payments to nine employees. Miller received a retention payment of $945,000, according to a May 7 SEC filing.
An activist investor initiated a proxy battle in April over similar issues. Wisconsin-based Global Value Investment Corp., an investment research and advisory firm and the beneficial owner of 245,940 shares of Bristow’s common stock, nominated four candidates to Bristow’s board of directors and called for the immediate resignation of four current board members.
In a public letter, GVIC listed many issues of concern, including Miller’s promotion from CFO to CEO on March 1. GVIC’s letter claims Bristow’s debt grew 53.4 percent during Miller’s tenure as CFO, which also included the planned $560 million acquisition of Oregon-based Columbia Helicopters Inc., which was called off in February.
Additionally, GVIC said it was concerned about the company's "inability to remedy its previously reported material weakness in internal controls over financial reporting, yet another delay in filing the Form 10-Q for the period ended Dec. 31, 2018, and the decision to delay an interest payment" that was due in April.
Since GVIC's April letter, Bristow has filed some of the overdue financial reports with the SEC. However, in a June 17 filing with the SEC, Bristow said that it would be unable to file its annual report for the fiscal year ended March 31, 2019. The company intends to file its most recent annual report “as soon as practicable” after a July 10 bankruptcy court hearing to retain KPMG LLP as Bristow’s independent auditor.
Meanwhile, Bristow announced in a May 31 press release that it had signed a five-year contract with British energy giant BP PLC (NYSE: BP) to support its North Sea operations. Bristow will service the region through bases in Aberdeen and Sumburgh, Scotland, according to the press release. That contract commenced on May 13.
For the bankruptcy process, Baker Botts LLP and Wachtell, Lipton, Rosen & Katz are serving as Bristow's legal counsel, and Alvarez & Marsal is serving as the company's restructuring adviser. Houlihan Lokey is serving as financial adviser to Bristow.
Davis Polk & Wardwell LLP is serving as legal counsel and PJT Partners is serving as financial adviser to certain holders of the secured notes. Kirkland & Ellis LLP is serving as legal counsel to certain holders of the unsecured notes, and Ducera Partners LLC and Seabury Corporate Advisors LLC are serving as financial advisers to those noteholders.
Struggling helicopter co. hires GE exec as general counsel amid bankruptcy, litigation
Houston-based Bristow Group Inc., which filed for bankruptcy protection in May and is facing investor lawsuits, has hired a new in-house lawyer.
COMPANIES IN THIS ARTICLE
Bristow Group Inc.
Houston, TX
Airlines/Aviation
$1.4BRevenue
4,058Employees
See full profile
By Olivia Pulsinelli and Chris Mathews – Houston Business Journal
Jul 8, 2019, 2:44pm EDT
Houston-based Bristow Group Inc., which filed for bankruptcy protection in May and is facing some related legal issues, has hired a new in-house lawyer.
Victoria Lazar has been appointed senior vice president, general counsel and corporate secretary, the Houston-based helicopter company announced July 1. She previously spent more than 11 years with Boston-based General Electric Co. (NYSE: GE) in Houston, most recently as general counsel of mergers and acquisitions. She also was associate general counsel for GE Oil & Gas and led the merger with Houston-based Baker Hughes Inc. to form Baker Hughes, A GE Company (NYSE: GE).
Before GE, Lazar served in various roles at Electronic Data Systems Corp., now DXC Technology, from 1996 to 2008, and she was an associate at Houston-based Baker Botts LLP from 1990 to 1996. She has a J.D. from the University of Chicago Law School and a Bachelor of Arts in government from Cornell University.
It was not immediately clear whom Lazar is replacing. According to documents filed with the U.S. Securities and Exchange Commission, Timothy J. Knapppreviously held those roles from September 2017 until at least early August 2018.
"Victoria's extensive experience in mergers and acquisitions, market transactions and integrations will be an asset to Bristow as we emerge from our financial restructuring and look to address some of the industry's biggest challenges like market consolidation, diversification and market oversupply," L. Don Miller, president and CEO of Bristow, said in the release.
The change comes at a challenging time for Bristow, though the company has been making progress in some areas. The company listed total assets of $2.86 billion and total debts of nearly $1.89 billion, as well as between 1,000 and 5,000 creditors, when it filed for Chapter 11 bankruptcy protection in May. The New York Stock Exchange began the process to delist Bristow's common stock just days later.
When the Chapter 11 filing was announced, Bristow said it had entered into a restructuring support agreement with “the overwhelming majority” of the parent company’s senior secured noteholders. On June 28, the company announced it entered into an amended and restated agreement with certain secured and unsecured noteholders, who have also reached an updated agreement to fund a new $150 million debtor-in-possession facility. Both agreements are subject to the approval of the bankruptcy court.
"We have successfully brought together holders of both our secured notes and our unsecured notes to achieve a meaningful milestone in our reorganization, and one that positions Bristow for a timely emergence from Chapter 11," Miller said in the June 28 press release. "Upon completion of this recapitalization, we will have a much stronger balance sheet with significantly lower debt levels and improved liquidity."
However, Bristow is also involved in securities litigation and other legal matters, the company recently disclosed in some financial reports filed with the SEC. One complaint filed on June 9 with the Delaware District Court alleges that Bristow executives, board directors and former executives acted in concert with one another to allow “a course of conduct by omission and commission that was designed to and did mislead the investment public,” according to the original complaint. Plaintiffs allege that a number of statements from Bristow in press releases and public filings were materially false. The complaint goes on to claim that the director defendants “either knew or should have known of the false and misleading statements that were issued on [Bristow’s] behalf and took no steps in a good faith effort to prevent or remedy that situation.”
The complaint also alleges that Bristow's board of director defendants wasted corporate assets by, among other actions, paying excessive compensation, bonuses, termination payments and awarding self-interested stock options to certain executive officers and directors. On May 3, Bristow issued over $2 million in executive retention payments to nine employees. Miller received a retention payment of $945,000, according to a May 7 SEC filing.
An activist investor initiated a proxy battle in April over similar issues. Wisconsin-based Global Value Investment Corp., an investment research and advisory firm and the beneficial owner of 245,940 shares of Bristow’s common stock, nominated four candidates to Bristow’s board of directors and called for the immediate resignation of four current board members.
In a public letter, GVIC listed many issues of concern, including Miller’s promotion from CFO to CEO on March 1. GVIC’s letter claims Bristow’s debt grew 53.4 percent during Miller’s tenure as CFO, which also included the planned $560 million acquisition of Oregon-based Columbia Helicopters Inc., which was called off in February.
Additionally, GVIC said it was concerned about the company's "inability to remedy its previously reported material weakness in internal controls over financial reporting, yet another delay in filing the Form 10-Q for the period ended Dec. 31, 2018, and the decision to delay an interest payment" that was due in April.
Since GVIC's April letter, Bristow has filed some of the overdue financial reports with the SEC. However, in a June 17 filing with the SEC, Bristow said that it would be unable to file its annual report for the fiscal year ended March 31, 2019. The company intends to file its most recent annual report “as soon as practicable” after a July 10 bankruptcy court hearing to retain KPMG LLP as Bristow’s independent auditor.
Meanwhile, Bristow announced in a May 31 press release that it had signed a five-year contract with British energy giant BP PLC (NYSE: BP) to support its North Sea operations. Bristow will service the region through bases in Aberdeen and Sumburgh, Scotland, according to the press release. That contract commenced on May 13.
For the bankruptcy process, Baker Botts LLP and Wachtell, Lipton, Rosen & Katz are serving as Bristow's legal counsel, and Alvarez & Marsal is serving as the company's restructuring adviser. Houlihan Lokey is serving as financial adviser to Bristow.
Davis Polk & Wardwell LLP is serving as legal counsel and PJT Partners is serving as financial adviser to certain holders of the secured notes. Kirkland & Ellis LLP is serving as legal counsel to certain holders of the unsecured notes, and Ducera Partners LLC and Seabury Corporate Advisors LLC are serving as financial advisers to those noteholders.
Last edited by rotor-rooter; 17th Jul 2019 at 22:43. Reason: Add link
Thread Starter
Join Date: Oct 2002
Location: All over the place
Posts: 231
Likes: 0
Received 0 Likes
on
0 Posts
Sometimes, the glitches in a seemingly great plan come from the most unlikely places. https://www.bloomberg.com/news/artic...-bill-backlash
Politics
Jeremy Hill July 29, 2019, 9:44 AM PDT
PHIIQ PHI INC-VOTING 0.42 USD -0.05-10.64%
The bankruptcy of helicopter operator PHI Inc. has transported the contentious issue of surprise health care bills to the steps of federal court. Judge Harlin Dewayne Hale on Tuesday will weigh objections to PHI’s plan to exit Chapter 11 protection. Among them is a challenge by a group of consumers suing PHI’s air ambulance division over its billing practices. If their lawsuit is successful, the bankruptcy plan won’t work, they said in court papers. The objection highlights the mounting backlash over surprise billing -- when patients are unwittingly billed huge amounts for care not covered by insurance. Surprise billing is common in emergency services scenarios like ground ambulance rides or anesthesiology -- situations where consumers don’t have much ability to haggle over prices because they are injured or unconscious, for example.
A representative for PHI did not immediately provide a comment.
The case is: PHI Inc., 19-30923, U.S. Bankruptcy Court, Northern District of Texas (Dallas).
Politics
Helicopter Bankruptcy Highlights Surprise Medical Bill Backlash
ByJeremy Hill July 29, 2019, 9:44 AM PDT
Consumers suing PHI over large bills oppose bankruptcy plan
Health care issue is an instance of rare bipartisan support
PHIIQ PHI INC-VOTING 0.42 USD -0.05-10.64%
The bankruptcy of helicopter operator PHI Inc. has transported the contentious issue of surprise health care bills to the steps of federal court. Judge Harlin Dewayne Hale on Tuesday will weigh objections to PHI’s plan to exit Chapter 11 protection. Among them is a challenge by a group of consumers suing PHI’s air ambulance division over its billing practices. If their lawsuit is successful, the bankruptcy plan won’t work, they said in court papers. The objection highlights the mounting backlash over surprise billing -- when patients are unwittingly billed huge amounts for care not covered by insurance. Surprise billing is common in emergency services scenarios like ground ambulance rides or anesthesiology -- situations where consumers don’t have much ability to haggle over prices because they are injured or unconscious, for example.
Bipartisan Issue
The issue has already reached the other branches of government. In an era of political divisiveness, a bill to curb the practice has received rare bipartisan support in Congress, while President Donald Trump this year called for an end to surprise bills. “This is kind of the one clear area of agreement between the two parties,” said Loren Adler, associate director at USC Brookings Schaeffer Initiative for Health Policy. “There is a sort of fundamental market failure.” Lafayette, Louisiana-based PHI said in court papers that no credible allegation has been made that PHI owes the consumers money, but instead the consumers owe PHI. The patients “simply complain that they were charged too much” and rely on mischaracterized testimony to make their point. PHI wants Hale to overrule the objection.A representative for PHI did not immediately provide a comment.
Big Bills
PHI makes more than half its money shuttling crews to offshore oil platforms in the Gulf of Mexico and other locations, but it also offers emergency medical transportation. A group of consumers allege the company’s air ambulance division didn’t disclose prices before flying them to hospitals, then stuck them with crushing bills, according to a class-action suit in Arizona. The lead plaintiff in the suit, a woman named Christina Wray, says in 2015 she was charged more than $57,000 for a flight from Taos, New Mexico to Albuquerque after she and her unborn child were exposed to carbon monoxide. Her insurance covered only about $5,000. PHI offered a discount of $15,665 if the payment was made within 30 days and Wray gave a counter-offer for a total payment of $12,000. After a few extensions, the two parties didn’t agree on a reduced price and PHI reinstated the full bill.Plan Feasibility
The patients want the Arizona court to weigh in on their legal obligation, if any, to pay money billed by PHI. The company’s current billing practices are baked into future revenue assumptions in its bankruptcy plan, and a successful lawsuit could destroy those underpinnings, the consumers say in their federal court objection. What’s more, not everyone who was potentially overcharged was notified of the bankruptcy, the consumers’ objection says, and confirming the plan could wipe out their own claims against PHI if they win the class action suit. “Debtors purposefully chose not to give notice to a huge group -- a group that they will seek to overcharge in the future to fund their plan,” attorneys for Wray and others wrote in the objection. “A deliberate choice to deny notice to a large, well-known group with ongoing disputed claims should preclude approval of the plan.” PHI isn’t required to notify all of its air medical customers of its bankruptcy, even in light of potential future claims, attorneys for PHI wrote in their reply. PHI said it notified the attorneys for the consumers bringing the suit.Messy Case
Consumers aren’t the only ones opposing the plan. The Securities and Exchange Commission also wants to block it, saying in court papers that the plan would wrongly protect third parties from future legal action, and the U.S. Trustee -- the federal bankruptcy watchdog -- objects on similar grounds. Objections to third party releases are common in large Chapter 11 cases, though, and they rarely stop confirmation, Bloomberg Intelligence analyst Phil Brendel said in an interview. Hale has presided over the case since it was filed in March. Its twists and turns have included dissent from creditors, mediation to resolve that friction and the resignation of longtime Chief Executive Officer Al A. Gonsoulin, who agreed to retire.The case is: PHI Inc., 19-30923, U.S. Bankruptcy Court, Northern District of Texas (Dallas).
Thread Starter
Join Date: Oct 2002
Location: All over the place
Posts: 231
Likes: 0
Received 0 Likes
on
0 Posts
Airnorth Sale
https://www.afr.com/street-talk/auct...0190805-p52dul
Save
ShareThere's further shake-up in Australia's aviation industry.
Regional airline operator Airnorth, which operates flights across Western Australia, Queensland and the Northern Territory, is up for sale with first round bids due this week. Airnorth's owner, US-based Bristow Group, has had boutique corporate adviser Allier Capital pitching the business to potential buyers in Australia and offshore in recent weeks, spruiking its $100 million or so a year revenue and potential to be part of a bigger network. Perhaps the most logical acquirer is ASX-listed independent regional airline Regional Express Holdings Ltd, which is considering a move into the Northern Territory.
Sources said Regional Express had approached Airnorth about a deal late last year, but has since moved on. Another potential buyer is UK-based Cobham Group, which owns the country's third largest aviation business Cobham Aviation Services. Interestingly, Cobham has bankered up and is considering a sale of its own Australian arm. However it is also understood to be mulling a bid for Airnorth and combining it with its own business. [Cobham has hired Bank of America Merrill Lynch's local team, as Street Talk revealed last week.]
There are also believed to be a handful of financial investors circling Airnorth, who are likely to consider Airnorth as a platform to a bigger move into the Australian skies. Bids are believed to be due this week with a second round slated to commence in the coming fortnight. The auction comes soon after Airnorth's owner, Houston-based Bristow Group, entered chapter 11 bankruptcy in the United States in May. It is understood prospective acquirers have been told the Australian business is ringfenced and its auction is slated to proceed as planned.
When Bristow last reported earnings for the quarter ended September 30, 2018, it said Airnorth recorded $47 million operating revenue and a $3 million loss in terms of adjusted EBITDA.
https://www.afr.com/street-talk/auct...0190805-p52dul
Auction underway for bankrupt Bristow Group's Australian airline
Sarah Thompson andAnthony MacdonaldAug 5, 2019 — 9.32pmSave
ShareThere's further shake-up in Australia's aviation industry.
Regional airline operator Airnorth, which operates flights across Western Australia, Queensland and the Northern Territory, is up for sale with first round bids due this week. Airnorth's owner, US-based Bristow Group, has had boutique corporate adviser Allier Capital pitching the business to potential buyers in Australia and offshore in recent weeks, spruiking its $100 million or so a year revenue and potential to be part of a bigger network. Perhaps the most logical acquirer is ASX-listed independent regional airline Regional Express Holdings Ltd, which is considering a move into the Northern Territory.
Sources said Regional Express had approached Airnorth about a deal late last year, but has since moved on. Another potential buyer is UK-based Cobham Group, which owns the country's third largest aviation business Cobham Aviation Services. Interestingly, Cobham has bankered up and is considering a sale of its own Australian arm. However it is also understood to be mulling a bid for Airnorth and combining it with its own business. [Cobham has hired Bank of America Merrill Lynch's local team, as Street Talk revealed last week.]
There are also believed to be a handful of financial investors circling Airnorth, who are likely to consider Airnorth as a platform to a bigger move into the Australian skies. Bids are believed to be due this week with a second round slated to commence in the coming fortnight. The auction comes soon after Airnorth's owner, Houston-based Bristow Group, entered chapter 11 bankruptcy in the United States in May. It is understood prospective acquirers have been told the Australian business is ringfenced and its auction is slated to proceed as planned.
When Bristow last reported earnings for the quarter ended September 30, 2018, it said Airnorth recorded $47 million operating revenue and a $3 million loss in terms of adjusted EBITDA.
Thread Starter
Join Date: Oct 2002
Location: All over the place
Posts: 231
Likes: 0
Received 0 Likes
on
0 Posts
PHI quietly emerged from Chapter 11 Bankruptcy last week, after a quite amazing journey through the process, resulting in the creditors owning 100% of the restructured organisation. It will be interesting to see how the future develops in a market still struggling with reduced demand, low pricing, overcapacity and surplus modern helicopters, coupled to a competitive marketplace filled with Operators with reduced debt loads and new management, operating and business strategies. It will be interesting to see how the Operators move forward individually, or whether additional consolidation or further reduction in Operators will actually occur in the near future.
It's a quite remarkable evolution from the environment of five years ago.
https://www.houmatoday.com/news/2019...-11-bankruptcy
Lafayette-based helicopter transport company PHI Inc. has emerged from Chapter 11 bankruptcy and reduced its debt by $500 million.
The company, which locally operates bases at the Houma-Terrebonne Airport and at Port Fourchon, completed its debt restructuring process after first filing March 14 in a Texas court and implementing a reorganization plan. PHI got federal approval of its reorganization last month, which included CEO and board chairman Al Gonsoulin retiring from the company and being replaced with COO Lance Bospflug and PHI’s unsecured creditors owning 100% of the company’s equity.
PHI had reported a $11.5 million loss in the third quarter of 2018 following months of a slumping oil and gas industry.
“Our ability to successfully emerge from bankruptcy less than six months after our Chapter 11 filings and strengthen our balance sheet while maintaining and continuing to expand our safety and service commitments is a testament to the hard work of our talented employees and the strength of our relationships with our customers and partners,” Bospflug said. “We have now reached all of the key goals that we set for ourselves at the beginning of this process, including a more sustainable debt structure and a stronger balance sheet.
“However, this milestone is just the beginning of what we plan to achieve moving forward. We have ambitious plans for our company to support not only our customers and the industries we serve but also to support our workforce, one of the most highly skilled and committed workforces in the aviation services industry.”
PHI’s equity is subject to the issuance of warrants to current equity holders and future dilution. It also closed a $225 million new five-year term loan and received new equity capital from former unsecured creditors.
“I am honored with the responsibility to lead this storied company forward,” Bospflug said. “On behalf of the board of directors and the entire PHI team, I want to thank Al Gonsoulin for his many years of dedicated service and important contributions to so many in our business. PHI has been a leader in aviation and continues to be recognized as being at the forefront of safety and operations globally.”
Its headquarters, 2001 SE Evangeline Thruway, is used to shuttle people and equipment to and from offshore drilling platforms in the Gulf of Mexico and foreign countries. Customers include Shell, BP, ExxonMobil and ConocoPhillips, among others, according to filings with the U.S. Securities and Exchange Commission.
PHI employs 2,207 companywide.
It's a quite remarkable evolution from the environment of five years ago.
https://www.houmatoday.com/news/2019...-11-bankruptcy
PHI emerges from Chapter 11 bankruptcy
By Adam Daigle / The Advocate (Baton Rouge)Posted Sep 10, 2019 at 7:19 PMLafayette-based helicopter transport company PHI Inc. has emerged from Chapter 11 bankruptcy and reduced its debt by $500 million.
The company, which locally operates bases at the Houma-Terrebonne Airport and at Port Fourchon, completed its debt restructuring process after first filing March 14 in a Texas court and implementing a reorganization plan. PHI got federal approval of its reorganization last month, which included CEO and board chairman Al Gonsoulin retiring from the company and being replaced with COO Lance Bospflug and PHI’s unsecured creditors owning 100% of the company’s equity.
PHI had reported a $11.5 million loss in the third quarter of 2018 following months of a slumping oil and gas industry.
“Our ability to successfully emerge from bankruptcy less than six months after our Chapter 11 filings and strengthen our balance sheet while maintaining and continuing to expand our safety and service commitments is a testament to the hard work of our talented employees and the strength of our relationships with our customers and partners,” Bospflug said. “We have now reached all of the key goals that we set for ourselves at the beginning of this process, including a more sustainable debt structure and a stronger balance sheet.
“However, this milestone is just the beginning of what we plan to achieve moving forward. We have ambitious plans for our company to support not only our customers and the industries we serve but also to support our workforce, one of the most highly skilled and committed workforces in the aviation services industry.”
PHI’s equity is subject to the issuance of warrants to current equity holders and future dilution. It also closed a $225 million new five-year term loan and received new equity capital from former unsecured creditors.
“I am honored with the responsibility to lead this storied company forward,” Bospflug said. “On behalf of the board of directors and the entire PHI team, I want to thank Al Gonsoulin for his many years of dedicated service and important contributions to so many in our business. PHI has been a leader in aviation and continues to be recognized as being at the forefront of safety and operations globally.”
Its headquarters, 2001 SE Evangeline Thruway, is used to shuttle people and equipment to and from offshore drilling platforms in the Gulf of Mexico and foreign countries. Customers include Shell, BP, ExxonMobil and ConocoPhillips, among others, according to filings with the U.S. Securities and Exchange Commission.
PHI employs 2,207 companywide.
Over capacity, new management, new strategies blah blah blah
The biggest crisis in this industry is the one being ignored - the lack of pilots, lack of new pilots entering the industry and pilots leaving for fixed wing or retiring.
Its all very well turning these companies around but there is a lack of pilots!!! Urgent investment needed. However these days they are more likely to invest in HR instead
The biggest crisis in this industry is the one being ignored - the lack of pilots, lack of new pilots entering the industry and pilots leaving for fixed wing or retiring.
Its all very well turning these companies around but there is a lack of pilots!!! Urgent investment needed. However these days they are more likely to invest in HR instead