La helicopter firm files in bankruptcy court

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Petroleum Helicopters International Inc., whose yellow helicopters are a common sight in Louisiana’s oilfield, has made a Chapter 11 bankruptcy filing in a Texas court, in what its leaders say is a way to ensure its future success.


A statement released by the Lafayette-based company says its operations will be unaffected by the filing, which includes all of the its principal U.S. entities. Operations in Mexico, Canada, and other non-U.S. sites are not included in the case.

The filing in the U.S. Bankruptcy Court for the Northern District of Texas includes a request that employee pay and benefit programs not be affected and that the company be permitted to make payments for goods and services and “otherwise operate its business as usual.”

Such requests are common and company officials said they see no reason for the court to deny theirs.


“PHI is open for business and operating as usual; employees will see no change in their day-to-day work or responsibilities as a result of the filing,” a company spokeswoman said.

At the core of the reasons for the filing, according to PHI’s statement, is $500 million in unsecured debt. Certain lease obligations the company describes as “above market” may also be renegotiated during the reorganization process, which is expected to last into the summer of this year.

“PHI, Inc. is working to emerge from bankruptcy … with a significantly reduced and more sustainable debt structure that will position the company for long-term success,” the statement says. “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.”


Chapter 11 of the U.S. Bankruptcy Code allows a company to reorganize itself under the supervision of the court. Generally, such filings require presentation of a plan relating to how debts will be paid. Its purpose is to allow this type of flexibility while a company remains open and viable. Individuals may also file for such protection.

PHI’s core business consists of offshore operations in the energy basins around the world. Locally, the company’s aircraft routinely transport employees to and from platforms and rigs.

Headquartered in Lafayette, PHI operates more than 240 aircraft in 70 locations throughout the world, servicing oil and gas, air medical transportation and technical services. It employs about 2,200 people.


The publicly-held company’s stock closed at $4.02 Thursday on the NASDAQ and opened at $3.75 Friday, dropping to $2.77 at 10:45 a.m. EDT, then climbing to $2.85 about six minutes later.

Phi