PHI Inc. today announced that the United States Bankruptcy Court for the Northern District of Texas has confirmed the amended Plan of Reorganization of PHI and its principal U.S. entities. The plan is subject to a range of conditions, including completion of new debt and equity financing, as well as the payment in full of all debt owed to Thirty-Two LLC and Blue Torch Capital.
The court will issue a written order to confirming the plan, which PHI describes as the last major milestone in its restructuring process. Under the plan, PHI expects to emerge from Chapter 11 by the end of August with a sustainable debt structure.
“The court has now confirmed our plan, clearing a path for us to emerge with balance sheet strength that matches our industry leading positions,” said Lance Bospflug, COO and president of PHI. “Our management team has always been confident that PHI would complete this process as a stronger company, employer and business partner, and we have achieved each of these goals with our confirmed plan.”
Upon emergence, PHI explains its unsecured creditors will own 100 per cent of the company’s equity, subject to the issuance of warrants to current equity holders and future dilution. PHI also expects to gain access to US$225 million of new five-year term loan financing aligned with its current business plan. The company also expects to receive an infusion of new equity financing from certain unsecured creditors.
Upon the effective date, Al Gonsoulin will retire as the CEO and chairman of PHI. He is to be succeeded by Bospflug, who will also sit on the new board in addition to serving as CEO.
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