Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Bonds

Erickson Plan Confirmed

The U.S. Bankruptcy Court confirmed Erickson's Second Amended Joint Plan of Reorganization. According to the Company, Erickson's restructuring will reduce its pre-bankruptcy debt by more than $400 million upon emergence from Chapter 11 protection. Erickson's C.F.O., David Lancelot, comments, "Erickson's successful restructuring would not have been possible without the strong support of our funded debtholders and aircraft lessors. The financial impact of this approved plan is very positive and allows us to be far more strategic to compete in the competitive landscape." In order to improve its capital structure and finance its exit from bankruptcy, Erickson was able to (i) obtain a commitment for an asset-based lending facility with a borrowing capacity of up to $150 million (led by MidCap Financial Trust), (ii) reach an agreement on non-cash repayment for $69.8 million in financing obtained during the bankruptcy and (iii) secure a backstopped $20 million rights offering. Erickson's president and C.E.O., Jeff Roberts, comments, "These financial commitments demonstrate the creditor interest and support in restructuring Erickson's financial affairs, servicing customer contracts, and enabling Erickson to continue operating well into the future….With the overwhelming support of all classes of creditors entitled to vote on the plan, Erickson will emerge from bankruptcy with the ability to grow its existing business segments of civil aviation, global defense and security, and manufacturing and MRO." This aviation services' provider filed for Chapter 11 protection on November 8, 2016, listing $602 million in pre-petition assets.

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