MD Helicopters sets bid procedures for assets, details credit bid

By Sarah Lizee

Olympia, Wash., March 31 – MD Helicopters, Inc. is seeking court approval of the bid procedures for its assets, according to a motion filed late Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company has entered into a stalking horse agreement with a creditor consortium led by Bardin Hill and MBIA Insurance Corp.

The purchase price is a credit bid against $150 million of debt under a term loan agreement, and an assumption by the group of up to $60 million of debtor-in-possession obligations. The credit bid will be increased by the difference between $60 million and the outstanding DIP debt being assumed, up to a maximum increase of $30 million.

The stalking horse agreement does not include a breakup fee, expense reimbursement or any other bid protections.

Under the proposed bid procedures, the intention to submit a qualified bid deadline is 4 p.m. ET on May 11, bids are due by 4 p.m. ET on June 3, an auction will be held on June 9, and a sale hearing will be held on June 17. However, if no one offers their intention to submit a qualified bid by the deadline, then a sale hearing will take place on May 27.

The Mesa, Ariz.-based helicopter manufacturer filed Chapter 11 bankruptcy on March 30 under case number 22-10263.

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