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CHC Group Objections Filed

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CHC Group’s creditors – ad hoc note holder group and Bank of New York Mellon – filed with the U.S. Bankruptcy Court separate objections to the motion to extend or limit the exclusivity period for the filing and solicitation of acceptances of a Chapter 11 Plan.

The ad hoc note holder group asserts, “A 120-day extension of the Exclusive Periods is not in the best interests of the Debtors’ estates or their creditors. The lack of progress on a plan of reorganization to date, the uncertainty surrounding the process and outcome of plan discussions, and the Debtors’ limited liquidity all support a more limited extension. A more limited extension will have the dual benefit of providing the Debtors with sufficient time to progress the ongoing plan negotiations, while at the same time requiring the Debtors to return to Court in the near term and justify the need for a further extension to the Debtors’ creditors and the Court based on evidence of substantial movement toward a successful conclusion to these chapter 11 cases resulting from a fair process focused on maximizing value for the Debtors’ creditors. A 60-day or shorter extension will allow the Court and parties in interest to assess the progress that the Debtors have made during any extension, which is more reasonable than granting a lengthy extension of the Exclusive Periods now based on the Debtors’ promise that progress is coming, especially in light of concerns regarding the Debtors’ current plan formulation process. While a 60-day or shorter extension will not prejudice the Debtors, a 120- day extension has the very real chance of prejudicing the Debtors’ creditors. The Debtors’ creditors should not be required to bear the risk of being held hostage to a 120-day extension while the Debtors take no meaningful steps toward a viable plan of reorganization or use exclusivity over the plan of reorganization process to advantage an insider.”

More on the CHC Group bankruptcy.