CHC Group wins final bankruptcy court approval to use cash collateral

By Caroline Salls

Pittsburgh, Jan. 6 – CHC Group Ltd. received final court approval to use the cash collateral of its pre-bankruptcy secured parties, seven months after the request was initially filed, according to an order filed Friday with the U.S. Bankruptcy Court for the Northern District of Texas.

A total of 10 interim cash collateral use orders were entered since early May.

Under the final order, the cash collateral use will terminate on the earlier of the effective date of CHC’s first amended Chapter 11 plan and 14 days after the company’s plan support agreement is terminated. The cash use will be terminated earlier upon the occurrence of specified termination events.

As previously reported, CHC’s cash collateral use motion drew opposition from HSBC Bank plc, but the initial interim order overruled or resolved all objections.

Based in Richmond, B.C., CHC is a commercial helicopter operator. It filed for Chapter 11 on May 5, 2016 under case number 16-31854.

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