CHC Elects to Skip Interest Payment on 2020 Notes 

By Amy Kluber | April 18, 2016
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CHC Group said it has decided to not make a $46 million interest payment due today on its 9.25% senior secured notes maturing Oct. 15, 2020, according to a company press release. Under the terms, the company has a 30-day grace period after the due date to make a payment and prevent default for nonpayment. CHC said it will use this period to restructure the company's debt and improve its long-term capital structure.

Last month, at the end of fiscal 2016's third quarter, CHC had total liquidity of $377 million to fund operations and meet obligations to suppliers and employees. If CHC does not make the interest payment before the grace period expires, the trustee or the holders of at least 25% in aggregate principal amount of the 2020 notes could elect to accelerate amounts due under the notes. As of Jan. 31, aggregate principal amount of $1,014,289,200 was outstanding.

Oil prices have hit lows not seen since the 2009 global financial crisis. The Wall Street Journal reported March 30 a likely recovery would not occur until "next year at the earliest."



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