LAFAYETTE, La., March 14, 2019 /PRNewswire/ -- PHI, Inc.
(The Nasdaq Select Global Market: PHII (voting); PHIIK
(non-voting)) ("PHI" or "the Company") today announced that PHI and
its principal U.S. entities filed for voluntary Chapter 11
protection in the U.S. Bankruptcy Court for the Northern District
of Texas to address the upcoming
maturity of PHI's unsecured senior notes and strengthen its balance
sheet in order to best position PHI for future success.
All of PHI's businesses are operating in the ordinary course and
are anticipated to continue to do so for the duration of the
Chapter 11 process. In the view of both PHI's Board and management
team, this is the best course of action to promote the Company's
financial wellbeing, strengthen its competitive position in the
industry, and advance the interests of PHI and its stakeholders,
while maintaining the Company's commitments to its customers and,
above all, the safety of its employees and passengers. With
existing cash on hand and the net proceeds from the $70 million in funding the Company received on
March 13, 2019 under its new term
loan with Blue Torch Capital LLC, as well as ongoing cash flows
from operations, PHI expects to have sufficient liquidity to
continue its business operations uninterrupted. As always, PHI is
resolute in its commitment to its core values of safety, quality,
efficiency and customer service during this period of
reorganization and into the future. The Company's management is
confident that PHI will complete this process as a stronger
company, employer, and business partner.
The Company stated: "After working closely with our advisors
since the spring of 2018, interacting with our various
stakeholders, and carefully evaluating all possible options, the
Board concluded that pursuing Chapter 11 protection is the most
appropriate course of action to address our matured debt and
strengthen our balance sheet. We are confident this will position
the entire company for continued leadership in the industry and
provide a platform for PHI's long-term success. We remain fully
committed to all of our stakeholders and to operating with the
highest standards of safety and quality as we navigate this
process, which we believe is the best option for a timely and
efficient resolution to our financial situation."
The Chapter 11 cases include PHI's principal U.S. entities.
PHI's international operations in Mexico, Canada, Trinidad
& Tobago, Cyprus,
Ghana, Israel, Saudi
Arabia, the Philippines,
Australia, and New Zealand are not included in the Chapter 11
cases.
PHI remains in discussions with the holders of its $500 million in unsecured notes and their
advisors to consider alternatives to address PHI's outstanding debt
obligations. The Company is also engaged in ongoing discussions
with its various lessors to address certain of its above-market
lease obligations. Importantly, the Company believes that its
creditors and lessors will be supportive of PHI and its prospective
business strategy and, to that end, anticipates filing a plan of
reorganization in the early stages of the Chapter 11 process.
PHI has filed a series of motions that, subject to Court
approval, will allow it to maintain its usual employee compensation
and benefit programs, make payments for goods and services in the
normal course, and otherwise operate its business as usual. These
motions are typical in a Chapter 11 process and the Company does
not anticipate any opposition to its motions.
PHI, Inc. is working to emerge from bankruptcy in the summer of
2019 with a significantly reduced and more sustainable debt
structure that will position the Company for long-term success.
Additional information about the Chapter 11 cases can be found
by visiting PHI's dedicated microsite:
https://restructuring.phihelico.com. Claims information can be
found at: https://cases.primeclerk.com/PHI. PHI has also
established a hotline to ensure a prompt response to questions,
which may be accessed at +1 (844) 216-8745 in the U.S. and
Canada or by dialing +1 (347)
761-3249 internationally.
PHI, Inc. is advised in this matter by Houlihan Lokey, FTI Consulting, DLA Piper, and
Jones Walker.
ABOUT PHI, INC.
PHI, Inc. is one of the world's leading helicopter services
companies, operating over 240 aircraft in over 70 locations around
the world. Known industry wide for the relentless pursuit of safe,
reliable helicopter transportation, PHI offers services to the
offshore Oil and Gas, Air Medical applications, and Technical
Services applications around the world. The highly trained pilots,
maintenance technicians, clinicians and diverse professional talent
across the organization gives the company a great depth in all
areas of operation and is composed of highly skilled, dedicated,
and loyal employees. In addition to operations in the United States, the company has operated in
43 foreign countries and continues to operate for customers across
the globe. PHI's Headquarters are in Lafayette, Louisiana USA and PHI employs
approximately 2,200 personnel globally.
Forward-Looking Statements
This release includes "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
All statements other than statements of historical fact contained
in this press release are "forward-looking" statements, as defined
by (and subject to the "safe harbor" protections under) the federal
securities laws. When used herein, the words "anticipates,"
"expects," "believes," "seeks," "hopes," "intends," "plans,"
"projects," "will" and similar words and expressions are intended
to identify forward-looking statements. Forward-looking statements
are based on a number of judgments and assumptions as of the date
such statements are made about future events, many of which are
beyond PHI's control. These forward-looking statements, and the
assumptions on which they are based, (i) are not guarantees of
future events, (ii) are inherently speculative and (iii) are
subject to significant risks and uncertainties. Actual events and
results may differ materially from those anticipated, estimated,
projected or implied by PHI in those statements if one or more of
these risks or uncertainties materialize, or if PHI's underlying
assumptions prove incorrect. All of PHI's forward-looking
statements are qualified in their entirety by reference to PHI's
discussion of certain important factors that could cause PHI's
actual results to differ materially from those anticipated,
estimated, projected or implied in those forward-looking
statements.
Factors that could cause PHI's results to differ materially from
the expectations expressed in such forward-looking statements
include, but are not limited to, risks and uncertainties relating
to the Chapter 11 cases, including but not limited to, PHI's
ability to obtain Bankruptcy Court approval with respect to motions
in the Chapter 11 cases, the effects of the Chapter 11 cases on PHI
and its various constituents, the impact of the Bankruptcy Court
rulings in the Chapter 11 cases, PHI's ability to develop and
implement a plan of reorganization that will be approved by the
Bankruptcy Court and the ultimate outcome of the Chapter 11 cases
in general, the length of time PHI will operate under the Chapter
11 cases, attendant risks associated with restrictions on PHI's
ability to pursue and execute its business strategies, risks
associated with third-party motions in the Chapter 11 cases, the
potential adverse effects of the Chapter 11 Cases on the Company's
liquidity, the potential material adverse effect of claims that are
not discharged in the Chapter 11 Cases, uncertainty regarding the
Company's ability to retain key personnel, the uncertainty and
continuing risks associated with the Company's ability to achieve
its stated goals and continue as a going concern; PHI's ability to
implement operational improvement efficiencies; the trading price
and volatility of the Company's common stock and risks related to
PHI's potential delisting from Nasdaq as well as other risks
referenced from time to time in PHI's filings with the U.S.
Securities and Exchange Commission.
Additional factors or risks that PHI currently deems immaterial,
that are not presently known to PHI, that arise in the future or
that are not specific to PHI could also cause PHI's actual results
to differ materially from its expected results. Given these
uncertainties, investors are cautioned not to unduly rely upon
PHI's forward-looking statements, which speak only as of the date
made. PHI undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or developments, changed circumstances, or otherwise.
Further, PHI may make changes to its intentions or plans at any
time, without notice and for any reason, and can provide no
assurances as to the ultimate outcome of the Chapter 11 cases.
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SOURCE PHI, Inc.