Offshore helicopter operator Bristow Group expects to emerge from Chapter 11 by the end of the month following a confirmation of its reorganization plan by a U.S. court.
Bristow voluntarily filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas in May 2019.
On October 4, 2019, the U.S. Bankruptcy Court for the Southern District of Texas confirmed Bristow’s amended plan of reorganization and indicated that it will enter a written order to this effect.
According to the company’s statement on Monday, it expects to consummate its financial restructuring process and successfully emerge from Chapter 11 by October 31, 2019.
Upon emergence as a privately held company, Bristow’s largest owners are expected to be affiliates of Solus Alternative Asset Management LP, South Dakota Investment Council, Empyrean Capital Partners, LP, Bain Capital Credit and Oak Hill Advisors, who are expected to own in excess of 50% of Bristow’s equity collectively, with the remaining equity held by other secured creditors and unsecured noteholders.
Under the terms of the approved plan, at emergence the company will receive $535 million of new capital from a majority of Bristow’s secured and unsecured noteholders: $385 million through an equity rights offering, and Bristow’s $150 million debtor-in-possession loan, which was funded in August 2019 and will convert into new equity of the reorganized company at emergence.
L. Don Miller , President and Chief Executive Officer of Bristow, said, “Achieving plan confirmation is an important milestone that comes less than five months after we initially filed Chapter 11. As a reorganized company, we will emerge a stronger, well capitalized global organization with an industry-leading balance sheet and strong liquidity.”
The consummation of the plan will be subject to the satisfaction or waiver of several conditions, including completion of the equity rights offering.
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