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CHC Group Plan Filed

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CHC Group filed with the U.S. Bankruptcy Court filed with the U.S. Bankruptcy Court an Amended Chapter 11 Plan of Reorganization and related Disclosure Statement.

According to the Disclosure Statement, “Among other things the Plan provides for a $300 million new money investment through the fully-backstopped Rights Offering; reduces the Debtors’ prepetition debt by approximately $925 million (prior to conversion of all of the New Second Lien Convertible Notes and by $1.4 billion subsequent to such conversion); reduces the Debtors’ annual Cash interest burden by 85%, which frees up approximately $115 million in annual cash flow that can be used for reinvestment in the Debtors’ business; provides for a global settlement between the Debtors and the Consenting Creditor Parties and provides for a right-sizing of the Debtors’ fleet, including a significant reduction in rent expense.”

Court-filed documents continue, “In addition, the Plan provides for distributions to holders of Allowed General Unsecured Claims aggregate value consisting of (i) eleven-point-six percent (11.6%) of the New Membership Interests, prior to dilution on account of the New Second Lien Convertible Notes and the Management Incentive Plan, and (ii) $37.5 million of New Unsecured Notes, less the amount of the Convenience Claim Distribution Amount. Holders of Allowed Primary General Unsecured Claims against all of the Debtors will receive their Pro Rata share of the Primary General Unsecured Claims Distribution valued at approximately $22.5 million, consisting of, collectively, (i) five-point-seven percent (5.7%) of the New Membership Interests, prior to dilution on account of the New Second Lien Convertible Notes and the Management Incentive Plan, and (ii) $17,979,648 of New Unsecured Notes (the ‘Primary General Unsecured Claims Distribution’).”

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