U.S-based CHC Group Ltd., which is engaged in the provision of transportation services to the offshore oil and gas industry, filed for Chapter-11 bankruptcy. The filing came days after a fatal accident of one of its helicopters in Norway, which forced the company to ground much of its fleet.
As of 31 January 2016, the company had debt of $2.19bn against assets of $2.17bn and operated a fleet of 231 helicopters as on 31 January 2016. Industry experts estimated that one-fifth of the company’s fleet was idle, due to lack of demand for its services from oil & gas companies, forcing it to explore cost-cutting options.
Further, on 15 April 2016, the company missed a $46m interest payment on approximately $1bn of its bonds, triggering a 30-day grace period to make the payment and avoid default.
Weil Gotshal & Manges and Debevoise & Plimpton are the legal representatives of the company.
Financial advisers to CHC are Seabury Advisors, PJT Partners and CDG Group.