PHI completes Chapter 11 debt restructuring
By Helicopters Staff
PHI Inc. of Lafayette, Louisiana, along with its main U.S. subsidiaries, including PHI Air Medical, has emerged from Chapter 11 bankruptcy protection. This completes the company’s debt restructuring process after implementing a reorganization plan confirmed by a U.S. Bankruptcy Court on July 30, 2019. PHI Inc. is one of the world’s largest helicopter services companies, operating more than 240 aircraft in over 70 locations around the world. The company employs approximately 2,200 personnel globally.
“Our ability to successfully emerge from bankruptcy less than six months after our Chapter 11 filings and strengthen our balance sheet, while maintaining and continuing to expand our safety and service commitments, is a testament to the hard work of our talented employees and the strength of our relationships with our customers and partners,” said Lance Bospflug, CEO, PHI. “We have now reached all of the key goals that we set for ourselves at the beginning of this process, including a more sustainable debt structure and a stronger balance sheet.”
Bospflug continues to explain this milestone is just the beginning of what the company plans to achieve in the future. “We have ambitious plans for our company to support not only our customers and the industries we serve, but also to support our workforce – one of the most highly-skilled and committed workforces in the aviation services industry,” he said.
As a result of completing the bankruptcy process, the company states it has reduced its debt by approximately US$500 million, with PHI’s former unsecured creditors now owning 100 per cent of the company’s equity. This result is subject to dilution in connection with future stock issuances including issuances of incentive equity grants to key personnel and potential issuances of stock to the holders of certain warrants issued to former equity holders.
In connection with this process, the company also closed a new US$225 million five-year term loan and received new equity capital from certain of its former unsecured creditors. Upon closing, Al Gonsoulin retired from the role of CEO and chairman of the Board of PHI, with Bospflug transitioning from serving as president and COO to become PHI’s new CEO.