Helikopter - Bristow USA er konkurs - Ber om beskyttelse under Chapter 11 - AIN/Vertical

Nearly $2 Billion in Debt, Bristow Files Bankruptcy

by Mark Huber

 - May 11, 2019, 1:03 PM

In a move widely anticipated for months, if not years, helicopter services company Bristow Group announced Saturday morning that it entered Chapter 11 bankruptcy proceedings in the Southern District of Texas, claiming debts of $1.885 billion against assets of $2.86 billion and citing “previously disclosed financial challenges” and “constrained liquidity.”  

Bristow CEO L. Don Miller called bankruptcy, “the best path forward for Bristow and its stakeholders.” The company said it was seeking bankruptcy protection to “restructure and strengthen its balance sheet and achieve a more sustainable debt profile” and that it would continue normal operations during its restructuring. 

The bankruptcy filings pertain to Bristow entities in the U.S. and the Cayman Islands and not its other non-U.S entities. The entities covered under the filings include Bristow Group, BHNA Holdings, Bristow Alaska, Bristow Helicopters, Bristow U.S. Leasing, Bristow U.S., BriLog Leasing, and Bristow Equipment Leasing.

Primary creditors listed include the company’s senior note holders, which are owed $895.25 million, various banks and financial institutions owed $580 million, and the GECAS helicopter leasing unit Milestone Aviation Group, owed $21.9 million.

Bristow said it will continue normal operations with the assistance of a $75 million loan from unnamed senior secure noteholders plus another $75 million in debtor-in-possession (DIP) financing from those noteholders upon court approval. As of last year Bristow operated 318 helicopters and 78 fixed-wing aircraft and had 4,000 employees worldwide. Bristow has not filed any official financial results in calendar 2019 nor in the fourth quarter of calendar 2018. The company derives more than 70 percent of its revenues from the offshore oil-and-gas market and joins of growing list of helicopter-related companies serving it that have filed bankruptcy in recent times including CHC, PHI, and leasing company Waypoint. 

Bristow Group commences voluntary Chapter 11 bankruptcy proceedings

Posted on May 11, 2019; Bristow Press Release

Bristow Group Inc. announced on May 11 that the company has voluntarily filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas. Bristow intends to use the proceedings to restructure and strengthen its balance sheet and achieve a more sustainable debt profile, while continuing to provide safe, reliable and professional industrial aviation services to its global clients well into the future.

Bristow’s announcement of bankruptcy proceedings comes shortly after the New York Stock Exchange warned the company it will be de-listed if its stock continues to trade below $1 per share. Bristow Photo

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All of Bristow’s businesses are operating in the ordinary course and are anticipated to continue to do so for the duration of the Chapter 11 process. The Chapter 11 filings pertain to certain of Bristow’s legal entities in the United States and two of its Cayman Islands subsidiaries.

Bristow’s other non-U.S. entities, including those holding Bristow’s non-U.S. air operating certificates (AOCs), are not included in the Chapter 11 filings.

L. Don Miller, president and chief executive officer of Bristow Group Inc., said, “After working diligently with our advisors on a thorough review of strategic financial alternatives, the Board of Directors and management concluded that the best path forward for Bristow and its stakeholders is to seek Chapter 11 protection. This process will allow us to strengthen our balance sheet, achieve a lower and more sustainable debt level and emerge as a stronger company. We have the support of the overwhelming majority of our parent company senior secured noteholders, with whom we have entered into a Restructuring Support Agreement that will help to de-lever our balance sheet, and we are actively working with other important stakeholders as we enter this process.”
Miller continued, “Bristow remains steadfast in its commitment to safety and providing exceptional client service during the Chapter 11 process. For clients, it is business as usual at Bristow, and our talented team will stay focused on delivering safe, reliable and professional services around the globe throughout the process and beyond. We expect to execute a prompt and efficient reorganization, and to emerge from this restructuring process as a stronger company that is an even better business partner, employer and trusted service provider.
“We deeply appreciate the hard work of our dedicated employees and their commitment to each other, our valued clients and our passengers. We are also grateful for the many years of support by our suppliers and business partners, and we look forward to continuing to work with them as we move through this process and beyond.”

To ensure its ability to continue operating in the ordinary course of business, Bristow has filed customary motions with the Bankruptcy Court seeking a variety of “first-day” relief for the filing entities, including authority to pay employee wages and benefits, vendors and suppliers in the ordinary course for goods and services provided after the petition date.
In addition to executing the Restructuring Support Agreement (the RSA) with the company, certain senior secured noteholders made a $75 million term loan to the company prior to the Court filing, and provided a commitment for a further $75 million in debtor-in-possession (DIP) financing that would be available upon Court approval. The financing package provides Bristow with capital that enables the company to fund its global operations and make continued investments in safety and reliability during the Chapter 11 reorganization proceedings.

The following eight entities are included in the filing: Bristow Group Inc., BHNA Holdings Inc., Bristow Alaska Inc., Bristow Helicopters Inc., Bristow U.S. Leasing LLC, Bristow U.S. LLC, BriLog Leasing Ltd. and Bristow Equipment Leasing Ltd.

Additional information regarding Bristow’s Chapter 11 filing will be available at http://www.bristowgroup.com/restructuring. Court filings and information about the claims process are available at https://cases.primeclerk.com/Bristow. Questions should be directed to the company’s claims agent, Prime Clerk, by email to bristowinfo@primeclerk.com or by phone at +1 844-627-6967 (toll free) or +1 347-292-3534 (toll).

Baker Botts L.L.P. and Wachtell, Lipton, Rosen & Katz are serving as the company’s legal counsel and Alvarez & Marsal is serving as the company’s restructuring advisor. Houlihan Lokey is serving as financial advisor to the company.
Davis Polk & Wardwell LLP is serving as legal counsel and PJT Partners is serving as financial advisor to the senior secured noteholders.