CHC in Bankruptcy as Oil Slump Hits Offshore Helicopter Serviceby
CHC Group Ltd., a provider of helicopter transport for offshore oil drillers, filed for bankruptcy protection in the U.S. after missing a $46 million interest payment last month.
CHC is the latest business driven over the brink by the slump in energy prices. It joins explorers, rig providers and pipeline operators in finding that cutting costs hasn’t been enough to keep them out of bankruptcy court since crude began its plunge two years ago.
“CHC’s operations have been significantly affected by the dramatic decline in oil prices since their peak in 2014 and general uncertainty in the energy market, which has led to decreased customer demand and an increase in idle aircraft,” the company said in a statement.
The company listed $2.19 billion in debt in a Chapter 11 petition filed Thursday in Dallas. With a fleet of 220 aircraft on six continents, British Columbia-based CHC will continue operating during the reorganization, according to the statement.
Law firms Weil, Gotshal & Manges LLP and Debevoise & Plimpton LLP are advising the company, along with Seabury Advisors, PJT Partners and CDG Group, CHC said.
The case is In re CHC Group Ltd., 16-31854, U.S. Bankruptcy Court, Northern District of Texas (Dallas).