Bristow Emerging From Bankruptcy with $535M

 - October 8, 2019, 8:46 AM

Bristow Group's amended plan of financial reorganization likely will be approved and the company plans to emerge from bankruptcy by the end of this month, it announced yesterday. Under the plan, Bristow will be recapitalized with $535 million. “We will emerge a stronger, well-capitalized global organization with an industry-leading balance sheet and strong liquidity,” said Bristow CEO L. Don Miller.

The Texas-based global helicopter services company will receive $385 million from a new equity rights offering and convert a $150 million debtor-in-possession loan received in August to new equity. Under the plan, Bristow will be majority controlled by a consortium of investment firms and bodies comprised of affiliates of Solus Alternative Asset Management LP, the South Dakota Investment Council, Empyrean Capital Partners, LP, Bain Capital Credit, and Oak Hill Advisors. Consummation of the plan is subject to the satisfaction or waiver of several conditions, including completion of the equity rights offering. 

In May, Bristow entered Chapter 11 bankruptcy proceedings in the Southern District of Texas, claiming debts of $1.885 billion against assets of $2.86 billion and citing “previously disclosed financial challenges” and “constrained liquidity.” The company derives more than 70 percent of its revenues from the offshore oil-and-gas market and joined a growing list of helicopter-related companies serving it that have filed bankruptcy in recent times, including CHC, PHI, and leasing company Waypoint.