CHC Helicopters International (RBD, Vancouver International) parent firm CHC Group has, along with forty-three of its subsidiaries, filed for Chapter 11 bankruptcy protection in the US state of Texas.
The firm said in a statement that the filing would allow it to restructure its balance sheet and fleet in an attempt to return to longterm profitability.
"Like many companies in the oil and gas industry, CHC’s operations have been significantly affected by the dramatic decline in oil prices since their peak in 2014 and general uncertainty in the energy market, which has led to decreased customer demand and an increase in idle aircraft," it said.
"Despite significant efforts to reduce costs, these factors, coupled with CHC’s debt and aircraft lease obligations, resulted in the Company’s decision to engage advisors to assist in evaluating strategic alternatives to improve its capital structure. CHC and its advisors determined a court-supervised reorganization process provides the best and most efficient way to align the Company’s debt, lease and interest costs with customer demand in the current operating environment, and position CHC for long-term success."
The entry into bankruptcy follows a tough last month for CHC Group which saw its UK and Norwegian fleets of EC225 Super Pumas being removed from scheduled services following an accident near Bergen Airport in Norway on April 29. Coupled with that, the firm's CHC Helicopter S.A. also declared that it would not be able to make a USD46 million interest payment due in April.
The firms affected by the filing include CHC's Canadian, Brazilian, Barbadian, Australian, UK, Norwegian and Dutch interests.
