CHC Group secures confirmation of fourth amended reorganization plan

By Caroline Salls

Pittsburgh, March 3 – CHC Group Ltd.’s fourth amended joint Chapter 11 plan was confirmed Friday by the U.S. Bankruptcy Court for the Northern District of Texas.

Under the plan, CHC will complete a recapitalization that will provide $300 million in new capital from its existing creditors in the form of a rights offering for new 3½-year second-lien convertible notes, as well as terms for restructured aircraft leases and the option for additional asset-based financing commitments of $150 million from Milestone Aviation Group Ltd. and its affiliates.

On the plan effective date, $30.8 million in additional new second-lien convertibles will also be issued to the backstop parties.

Under the rights offering, the $300 million investment will be allocated with $280 million to the holders of senior secured notes claims and $20 million to the holders of unsecured notes claims.

Non-eligible offerees will be given the opportunity to receive a substitute distribution consisting of new membership interests.

A total of 79.5% of the new membership interests will be distributed to holders of senior secured notes claims, 8.9% to holders of unsecured notes claims and 11.6% to holders of general unsecured claims.

Also under the plan, holders of convenience claims will receive the lesser of payment in full in cash and a share of a claims distribution amount.

Holders of priority claims will be paid in full.

Holders of other secured claims will either be paid in full in cash or receive the collateral securing the claims.

All existing CHC interests will either be cancelled or struck off.

CHC is a Richmond, B.C., commercial helicopter operator. It filed for Chapter 11 on May 5, 2016 in the U.S. Bankruptcy Court for the Northern District of Texas under case number 16-31854.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.