The helicopter company whose aircraft crashed outside Bergen last week, killing 13, has filed for relief under the Chapter 11 bankruptcy code in the US.
CHC Group's move follows its delisting from the New York stock exchange earlier this year, after it failed to keep a market capitalization of US$15 million.
Last week, CHC put all Airbus EC225 Super Puma helicopter flights temporarily on hold, with the exception of those dedicated to search-and-rescue missions, after its unit, of the same make, crashed.
At the time, the firm said: "Based on the information available to-date, the Accident Investigation Branch Norway has stated that the EC225 LP helicopter suffered in-flight separation of the main rotor hub from the main gearbox (MGB); the root cause has yet to be identified."
Today, CHC said the Chapter 11 move, which it describes as a "reorganization," is "expected to strengthen CHC's financial position by reducing long-term debt and enhancing financial flexibility while allowing the Company to manage and operate its fleet of aircraft."
CHC says it expects day-to-day operations to continue without interruption throughout the court-supervised reorganization process.
Karl Fessenden, President and CEO said: “CHC continues to be a strong company operationally and we remain fully committed to delivering safe
and reliable service to our customers. Importantly, normal business operations will continue. The step we have taken today provides an orderly path to enhance our financial flexibility and establish a competitive capital and operating structure that will allow us to invest in and grow CHC’s business over the long-term."
CHC says: "Like many companies in the oil and gas industry, 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. Despite significant efforts to reduce costs, these factors, coupled with CHC’s debt and aircraft lease obligations, resulted in the
company’s decision to engage advisors to assist in evaluating strategic alternatives to improve its capital structure.
"CHC and its advisors determined a court-supervised reorganization process provides the best and most efficient way to align the company’s debt, lease and interest costs with customer demand in the current operating environment, and position CHC for long-term success."
Investigations into last week's helicopter crash, described as one of the worst in the history of the Norwegian oil industry, are ongoing.
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