CHC Group Term Sheet Approved


The U.S. Bankruptcy Court issued an order approving CHC Group’s motion for an order authorizing the Debtors to enter into and perform under a restructuring lease term sheet with ANZ Leasing with respect to aircraft with manufacturer’s serial numbers 6597, 6604, 31114 and 31126 and to assume certain unexpired leases and executory contracts.

As previously reported, “In accordance with the Term Sheet, the Debtors and the Lessor have agreed to forms of the Restructuring Lease Documents containing certain restructured lease terms, which will govern the Helicopters upon the Debtors’ emergence from chapter 11, including: a. extension of the expiry dates for the leases; b. reduced monthly lease payments; and c. amended purchase options in connection with the Helicopters.”

In addition, “The parties have also agreed that in exchange for the modifications contained in the Restructuring Lease Documents and in satisfaction of any outstanding prepetition and post-petition amounts owed under the Pre-Restructuring Lease Agreements, the Lessor shall be entitled to a settlement payment on the Lease Agreement Effective Date of $895,918. The Term Sheet and the Restructuring Lease Documents will only become effective upon (A) the earlier of (i) the effective date of a plan of reorganization and (ii) substantial consummation of a plan of reorganization (such earlier date, the ‘Emergence Date’), and (B) the execution of the Restructuring Lease Documents.”

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