Waypoint Leasing Holdings, the world’s largest independent helicopter leasing company, has filed Chapter 11 bankruptcy and put itself up for sale. It announced the filing in the U.S. Bankruptcy Court for the Southern District of New York late yesterday. Founded in 2013, when the price of oil topped $105 per barrel, Waypoint has seen its fortunes decline with the price of oil.
Its portfolio currently includes approximately 160 aircraft with a market value of $1.6 billion and it also holds delivery positions worth $700 million. Waypoint is backed in large part by entities controlled by billionaire investors George Soros and Michael Dell.
The bankruptcy filing comes nearly three months after it was disclosed that Waypoint was attempting to negotiate better terms with more than two dozen lenders. In a statement released yesterday, Waypoint “has been actively working with its lenders to de-lever its balance sheet and reposition the company for strength and stability. Waypoint plans to continue that work during the Chapter 11 process and, in addition to de-levering, Waypoint will continue to implement strategic initiatives.”
Waypoint said it would continue normal operations during the bankruptcy and expressed confidence that it would facilitate new ownership. “Waypoint has run a comprehensive sale process over the past months, has received bids from numerous parties, and expects to use the Chapter 11 process to facilitate the acquisition of Waypoint by a new owner with a continued focus on our customers,” the statement said.
The company currently employs 40 people located at eight offices worldwide. It serves markets including oil and gas, emergency medical services (EMS), government and humanitarian services, utility and firefighting, search and rescue (SAR), and wind farm support.
Hooman Yazhari, who joined Waypoint earlier this year as CEO, said the bankruptcy filing would provide the company “with the opportunity to emerge with a stronger, sustainable, and more competitive balance sheet.” Yazhari previously was with helicopter services company CHC, where he served as general counsel and chief administrative officer and prepared that company for its Chapter 11 filing. His hiring was part of a large front office restructuring that saw the departure of the original CEO and several senior executives.
Waypoint's move comes as helicopter service companies, already under pressure, face new challenges from the most recent slide in oil prices, which have dropped from $67 to $50 per barrel within the last month. During the past 30 days, Bristow Group, the world’s largest oil and gas helicopter services company, has seen its stock share price plummet from $11.45 to $4.27 and earlier this month the CEO of that company, Jonathan Baliff, announced his departure. Over the past year, the stock price of oil and gas services provider PHI has plunged from $13.95 to $4.62, and that company is under pressure to sell off its profitable air medical division to pay down debt.
On October 15, GE Capital Aviation Services (GECAS) unit Milestone Aviation Group, the world’s largest helicopter leasing company, announced that CEO and co-founder Daniel Rosenthal was stepping down.