BankruptcyData’s detailed analysis and summary of CHC Group’s Fourth Amended Chapter 11 Plan of Reorganization, dated February 16, 2017, is now available. The U.S. Bankruptcy Court confirmed the Plan on March 3, 2017; however, an effective date has not yet been issued.
BankruptcyData notes, “Pursuant to the Plan Support Agreement and Plan, holders of Allowed Senior Secured Notes Claims and Allowed Unsecured Notes Claims that are Eligible Offerees will have the opportunity to participate in the $300 million Rights Offering, with Subscription Rights to participate in $280 million of the Rights Offering (which equates to 74.41% of the New Membership Interests issuable upon conversion of such New Second Lien Convertible Notes on a fully diluted basis (but subject to dilution for the Management Incentive Plan) as of the Effective Date (i.e., $404,444,444 face amount of the New Second Lien Convertible Notes as of the Effective Date)) allocated to the holders of Allowed Senior Secured Notes Claims and $20 million of the Rights Offering (which equates to 5.32% of the New Membership Interests issuable upon conversion of such New Second Lien Convertible Notes on a fully diluted basis.”
BankruptcyData’s Plan Summary continues, “The Valuation Analysis estimates the Total Enterprise Value of the Reorganized Debtors to be approximately $700 – $900 million. It further projects pro forma net debt of $226 million upon the Effective Date. This consists of $411 million of gross debt, excluding $464 million of mandatorily convertible debt treated on an as converted basis, and cash of $186 million. The Total Enterprise Value implies an Equity Value range of $474 – $674 million.”
BankruptcyData subscribers receive access to the full summary, which provides further details on corporate background, events leading to CHC Group’s May 5, 2016 Chapter 11 filing, recovery specifications and a comprehensive break-down of all claimant classes.
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