US Bankruptcy Court OKs CHC Group’s Reorganization Plan

By S.L. Fuller | March 6, 2017
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Image courtesy of CHC Helicopter

CHC Group’s plan to emerge from Chapter 11 of U.S. Bankruptcy Code has been approved by the U.S. Bankruptcy Court of the Northern District of Texas, the company said. Now that it has been confirmed, CHC’s plan of reorganization has it completing recapitalization.

“We are very pleased with the court’s approval of our plan, which is the final legal step in our financial restructuring process and a key milestone toward CHC emerging as a stronger, better capitalized company,” said Karl Fessenden, CHC president and CEO.


Fessenden went on to say that CHC has found success working with its various fleet providers to renew its fleet to the “correct mix and number of aircraft” to meet customer need.

The recapitalization should provide $300 million in new capital from some of CHC’s existing creditors and terms for restructured aircraft leases. This would include the option for additional asset-based financing commitments of $150 million from Milestone Aviation Group Ltd. and its affiliates. The reorganization plan also has CHC reducing liabilities and restructuring its debt.

CHC filed for bankruptcy on May 5. After working through the bankruptcy process, which included finding creditors and defining the plan, the company said it believes it now has a “strong foundation for long-term success.” CHC recently announced a re-branding initiative, including a website and logo redesign.

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