CHC Group Bankruptcy Plan Filed


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

According to the Disclosure Statement, “The Plan is also value-maximizing for all stakeholders. 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 described more fully below; and provides for a right-sizing of the Debtors’ fleet, including a significant reduction in rent expense.”

Court-filed documents continue, “On the Effective Date, approximately $30.8 million in additional New Second Lien Convertible Notes will also be issued to the Backstop Parties in exchange for undertaking the Backstop Commitment, making the aggregate principal amount of New Second Lien Convertible Notes issued approximately $464.1 million.”

The Debtors also filed with the Court a committee letter in support of the Second Amended Joint Chapter 11 Plan of Reorganization.

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