Helicopter services company CHC Group announced a financial restructuring that could reduce its funded debt obligations by up to $500 million. As part of the restructuring, a substantial portion of CHC’s existing debt and equity holders agreed to provide more than $100 million in new money and liquidity-enhancing commitments.

The new funding consists of $60 million in initial investment, an additional $30 million of available commitments, and $10 million from adjustments to its aircraft financing facilities. The transaction comes following negotiations with CHC’s key financial stakeholders over the preceding months. 

“Today marks a significant, positive step forward for CHC, providing a clear path to a significantly reduced debt burden for the company, which will benefit our customers, suppliers, and employees,” said CHC CEO David Balevic. “Our enhanced balance sheet will provide us greater operating flexibility to meet the rapidly changing rotary wing aviation market.”

CHC operates a mixed fleet of heavy, super-medium, intermediate, and medium twin-engine helicopters in support of the offshore energy industry worldwide. The company emerged from bankruptcy restructuring in 2017 when it received $300 million from existing creditors, restructured aircraft leases, and secured asset-based financing commitments of $150 million.