Erickson Files For Chapter 11 Relief - Quick Facts

(RTTNews) - Erickson Inc. (EAC) announced the company and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11. The company expects to file a consensual plan of reorganization with the support of its major creditor constituencies within the first 50 days of the bankruptcy case, which the company anticipates will dramatically reduce its total indebtedness and allow it to exit bankruptcy with a stronger balance sheet in early 2017. The restructuring is expected to preserve jobs for more than 700 employees.

CEO Jeff Roberts said, "Erickson is not immune to the numerous business challenges currently facing the helicopter industry which have placed downward pressure on operating results and asset values. We have examined a number of alternatives and are convinced that a formal restructuring is the most effective path forward."

Erickson has filed certain customary "first day motions", including a new debtor in possession financing from its first lien lenders and certain of its 2nd lien bondholders, with the court to ensure a smooth transition into Chapter 11. The first day motions will allow the company to operate in the ordinary course and maintain its critical customer and supplier relationships.