Helicopter servicer PHI sinks after filing for Chapter 11 protection

PHI, Inc. announced overnight that the company 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 and are anticipated to continue to do so for the duration of the Chapter 11 process, the helicopter services company said in a statement. PHI remains in discussions with the holders of its $500M 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," it add. PHI said it 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." Shares of PHI are down 31%, or $1.25 to $2.77 in late morning trading.