Helicopter offshore services company PHI and its principal U.S. subsidiaries, including PHI Air Medical, have exited Chapter 11 bankruptcy, shedding $500 million in debt and acquiring new equity capital and a $225 million five-year term loan, it announced yesterday afternoon. “Our ability to successfully emerge from bankruptcy less than six months after our Chapter 11 filings and strengthen our balance sheet, while maintaining and continuing to expand our safety and service commitments, is a testament to the hard work of our talented employees and the strength of our relationships with our customers and partners,” said PHI chief executive Lance Bospflug.
Former unsecured creditors now own 100 percent of PHI’s equity, which according to the company is subject to dilution in connection with future stock issuances, including issuances of incentive equity grants to key personnel and potential issuances of stock warrants issued to former equity holders. "We have now reached all of the key goals that we set for ourselves at the beginning of this process—including a more sustainable debt structure and a stronger balance sheet,” Bospflug added. “However, this milestone is just the beginning of what we plan to achieve moving forward.”
With the exit, Bospflug has transitioned from president and COO to chairman and CEO of the company’s new board of directors. He replaces Al Gonsoulin in a move that was first announced in June. Based in Louisiana, PHI operates more than 240 aircraft in 70 locations around the world, primarily serving the offshore oil and gas industry as well as air medical and technical services.