CHC Group seeks OK to reject equipment leases, return 40 helicopters

By Caroline Salls

Pittsburgh, June 3 – CHC Group Ltd. requested court approval to reject equipment leases and subleases as part of its Chapter 11 bankruptcy proceedings, according to an 8-K filed Friday with the Securities and Exchange Commission.

Specifically, the company said it is looking to return 40 helicopters in connection with the rejection motion.

“CHC has identified cost savings to be achieved through a significant reduction in their fleet by eliminating helicopters and other related equipment that currently are not, or soon will not be, used to generate revenue in CHC’s businesses,” the motion said.

“In addition, CHC is in the process of reducing the complexity of its fleet, which will decrease costs associated with crew training, inventory and maintenance. This reduction and rationalization of CHC’s fleet will create a significant surplus of helicopters and other related equipment owned and leased by CHC.”

A hearing is scheduled for June 27.

Based in Richmond, B.C., CHC is a commercial helicopter operator. It filed for Chapter 11 on May 5 in the U.S. Bankruptcy Court for the Northern District of Texas under case number 16-31854.

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