Erickson Inc.’s plan of reorganization has been confirmed by U.S. Bankruptcy Court for the Northern District of Texas, the company said. Erickson and its subsidiaries filed for bankruptcy protection under Chapter 11 less than five months ago.
“Erickson is extremely satisfied with this quick and successful outcome,” Erickson CFO David Lancelot said. “Erickson’s successful restructuring would not have been possible without the strong support of our funded debtholders and aircraft lessors. The financial impact of this approved plan is very positive and allows us to be far more strategic to compete in the competitive landscape.”
Under the plan, Erickson is set to reduce its pre-bankruptcy debt by more than $400 million upon emergence. In its effort to emerge, the company has obtained a commitment for an asset-based lending facility with a borrowing capacity of up to $150 million, reached an agreement on non-cash repayment for $69.8 million in financing obtained during the bankruptcy and secured a backstopped $20 million rights offering.