The voluntary Chapter 11 petitions were filed by the company to facilitate the restructuring of its balance sheet and fleet, and position the company for long-term success.

CHC noted that like many companies in the oil and gas industry, its operations have been significantly affected by the dramatic decline in oil prices since their peak in 2014 and general uncertainty in the energy market, which has led to decreased customer demand and an increase in idle aircraft.

CHC expects day-to-day operations to continue without interruption throughout the court-supervised restructuring process. The company also expects to maintain sufficient liquidity throughout the restructuring process to maintain its continuing business operations.

Further, the company said it has filed certain “first-day” motions with the court to facilitate operating in the normal course throughout the court-supervised restructuring process.

The reorganisation is expected to strengthen CHC’s financial position by reducing long-term debt and enhancing financial flexibility while allowing the Company to manage and operate its fleet of aircraft.

Karl Fessenden, President and Chief Executive Officer:

“CHC continues to be a strong company operationally and we remain fully committed to delivering safe and reliable service to our customers. Importantly, normal business operations will continue.

“The step we have taken today provides an orderly path to enhance our financial flexibility and establish a competitive capital and operating structure that will allow us to invest in and grow CHC’s business over the long-term. We remain committed to maintaining our position as a world class helicopter service provider – one that continues to set the standard for safety, customer service and value across the industry. We thank our customers and suppliers for their ongoing support as well as our employees for their continued dedication.”

CHC Scotia is not one of the subsidiaries. A total of 43 subsidiaries were part of the Chapter 11 filing. Information about the specific subsidiaries filing for Chapter 11 is available on the Company’s website at www.chc.ca/restructuring or the claims agent’s website at www.kccllc.net/chc.

A CHC spokeswoman in Aberdeen said: “Like many companies in the oil and gas industry, CHC’s operations have been significantly affected by the dramatic decline in oil prices since their peak in 2014 and general uncertainty in the energy market, which has led to decreased customer demand and an increase in idle aircraft.

“CHC and its operating subsidiaries around the world continue to serve our customers with a keen focus on safety, compliance and reliability. We are committed to continuing to run a strong operation throughout the court-supervised reorganisation process.

“We fully expect service to customers will continue uninterrupted throughout this process and we will remain focused on providing our customers with the safe, compliant and reliable service they have come to expect from CHC. We plan to continue to operate our flights today, tomorrow and in the future just as we always have – safely, responsibly and efficiently.”

Chapter 11 Bankruptcy Explained

Chapter 11 is a form of corporate bankruptcy in the United States that enables a company to reorganise a faltering business.

Under Chapter 11 a company’s management usually stays in place to run the day-to-day business, although all major business decisions must be approved by a bankruptcy court.

The company will usually attempt to work out a plan to return to profitability while paying back creditors. It if can’t, the company will be liquidated, with the assets sold to pay creditors.

The plan must be accepted by the creditors, bondholders, and stockholders, and confirmed by the bankruptcy court. However, even if creditors or stockholders reject the plan, the court can confirm the plan if it finds that the plan treats creditors and stockholders fairly.

If the company is quoted on a stock exchange, its stock and bonds may continue to trade in the securities markets. Since they still trade, the company must continue to file SEC reports with information about significant developments.