Mark Huber is an aviation industry veteran who has worked in the flight training, aircraft sales, aircraft component, and airport development businesses. He has flight time in more than 50 different and diverse aircraft, including helicopters, aerobatic aircraft, vintage warbirds, jet fighters, business jets and turboprops, and transport-category aircraft. He has jumped out of several of these—on purpose—with a parachute. His defense and aviation journalism has been published in a variety of national and international periodicals.

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Mark Huber

Add Erickson to the growing list of OGP helicopter companies seeking financial reorganization: it filed Chapter 11 bankruptcy November 8 in the U.S. Bankruptcy Court Northern District of Dallas, listing $561 million in debt. The move comes after Portland, Ore.-based Erickson missed scheduled November 1 debt interest payments and days after the resignation of former chairman Quinn Morgan from Erickson’s board. Companies controlled by Morgan bought Erickson in 2007, took it public in 2012 and engineered its 2013 acquisition of Evergreen Helicopters and Air Amazonia, which loaded down Erickson with $355 million in debt at the same time the global oil-and-gas market was collapsing.

 


Erickson subsequently lost major defense support and a critical fire-suppression contract from the U.S. Forest Service, leading it to post large quarterly losses over the last several years. Erickson characterized the bankruptcy filing as “consensual” and said the company is negotiating to receive $60 million in debtor-in-possession financing from lienholders to finance continuing operations as it navigates court-supervised reorganization from which it plans to emerge next year. Erickson employs 700 people worldwide and operates a diverse rotorcraft fleet that includes the S-64 AirCrane, for which it holds the type certificate.

 


The $60 million debtor-in-possession financing “will provide sufficient liquidity to fund operations in the ordinary course during our restructuring,” said Erickson CFO David Lancelot.

 


Erickson president and CEO Jeff Roberts said, “Unfortunately, Erickson is not immune to the numerous business challenges currently facing the helicopter industry that have placed downward pressure on operating results and asset values. Operational integrity and safety continue to be our top priority, and this restructuring will in no way interfere with our performance and commitment to customer satisfaction. We have examined a number of alternatives and are convinced that a formal restructuring is the most effective path forward. We anticipate a controlled process that better positions us to serve our customers. We appreciate the work of our largest creditors, board, investors and employees who are committed to transparent and timely communications with our customers, prospects, vendors, suppliers, partners and key regulatory agencies.” &nbsp;

News and issues regarding all manner of civil and military rotorcraft and their powerplants, including helicopters, tilt rotors and unmanned air vehicles.

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