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.

Contributor

Mark Huber

MD Helicopters voluntarily filed Chapter 11 bankruptcy (reorganization) earlier today as part of a strategy to infuse the company with $60 million of fresh “debtor-in-possession” capital, discharge potentially crippling debt, and expedite the sale of its assets. In a prepared statement, MD said it would continue operations as normal during the reorganization.&nbsp;

 


“MD fully expects operations to continue as normal during the sale process. We have ample liquidity to meet our business obligations, including a commitment for additional new financing in connection with this process, and we remain focused on serving civil and military customers and working with suppliers as normal,” the company said.&nbsp;

 


The company had been actively trying to find a buyer since the departure of former CEO Lynn Tilton in March 2020. MD was one of dozens of companies controlled by Tilton’s Patriarch Partners and financed by the now-bankrupt Zohar Funds.&nbsp;Patriarch bought “distressed” companies via funding from a series of collateralized loan obligations (CLOs) marketed through Patriarch via its $2.5 billion “Zohar” funds. Tilton placed the funds into bankruptcy in 2018 in what now appears an unsuccessful attempt to keep Patriarch’s portfolio from being liquidated by Zohar creditors, including bond insurer MBIA, which insured $1 billion worth of Zohar notes. Combined debt of the funds is estimated at $1.7 billion.&nbsp;Tilton assumed control of MD in 2005.&nbsp;

 


Bankruptcy also appears to be an escape from a potentially nine-figure civil judgment recently lodged against MD. In October, a federal jury found the company guilty of fraud related&nbsp;to military sales to&nbsp;El Salvador, Saudi Arabia, and Costa Rica in 2011 and 2012. Under federal law, the $36 million damage award could have been trebled, and whistleblowers Philip Marsteller and Robert Swisher, who originally filed the complaint in 2013, could have received up to 30 percent of the final amount.&nbsp;

 


Post-Tilton MD pivoted to improve customer support and bolster its civil market presence, but the clock was ticking. “Since last year, we have been exploring a potential sale of the company that would enable us to move forward with new ownership to support MD’s continued manufacturing operations and maintenance services long into the future, as well as deleverage our capital structure,” said director and chairman Alan Carr, who has run MD since Tilton’s departure.&nbsp;

 


As part of the bankruptcy process, MD entered into an asset purchase agreement with a creditor consortium led by Bardin Hill and MBIA Insurance, which will acquire nearly all of the company’s assets and provide the new capital. It said “financing from accounts managed by Bardin Hill and MB Global Partners” with “cash generated from MD’s ongoing operations, is expected to support the business throughout the sale process.”&nbsp;

 


MD said bankruptcy “is expected to provide for a quick and orderly sale of the company in a court-supervised sale process.” The consortium will serve as the “stalking horse bidder” in a court-supervised sale of the company, which could be made to a higher bidder, should one materialize.&nbsp;&nbsp;

Issues regarding financing of aircraft; aviation insurance; tax issues for aircraft operators; new companies and people in the aviation financing and insurance industries.

MD Helicopters Files Chapter 11 Bankruptcy

MD Helicopters receiving $60 million in debtor financing, will continue operating, while assets sold. 

2024 Corporate Aviation Leadership Summit

Charles Alcock

News and developments about airplanes, helicopters and unmanned air vehicles used in all varieties of operations, including airlines, military, business, commercial, general aviation and private.

Essential news and analysis on the defense aerospace business. Your trusted source for new and ongoing programs and requirements in military aircraft (manned and unmanned), engines, avionics, weapons and associated systems, including ground-based air defense.

Meanwhile, ‘technical delays’ raise questions over efforts to relaunch Lilium’s eVTOL progradm

Archer Raises Capital To Exploit Military Demand for VTOL Aircraft

News and issues concerning the aviation charter and fractional-ownership industries and markets, including company announcements, regulations, new developments and labor issues.

News about bills, laws, regulations and other governmental decisions affecting aviation and aerospace. Topics include FAA re-authorizations, taxes on fuel and aviation activities, environmental legislation, ICAO decisions, governmental mediation of labor conflicts and World Trade Organization disputes and decisions.

News and issues relating to business, corporate and private aviation, primarily regarding turbine-engine-powered airplanes and helicopters. Subjects include aircraft, engines, maintenance, operations, personnel, acquisitions, accidents, safety, security, and training.

Rates applying from March 1 are up to 300% higher than previous passenger taxes

Charter Flights Face Punitive Passenger Taxes in France

U.S. executives hail ‘Trump bump’ but acknowledge some cause for concern 

AINsight: Business Aviation Outlook Shows Wider Transatlantic Gap

Matt Thurber

News and issues relating to international air transport and cargo carriers, national airlines and regional airlines, including aircraft, engines, personnel, acquisitions, accidents, safety, security and training.

Company will become three publicly listed entities in the second half of 2026

Honeywell Outlines Plan To Separate Aerospace, Automation

News and issues relating to the aerospace industry that are related to the science, engineering and business of flight in space involving civil, industrial and military applications, and similar topics related to flight in the atmosphere of the Earth that are not covered more directly by other AINonline subject channels. In other words, both astronautical and aeronautical subjects, except for those aeronautical topics that are specifically covered elsewhere on this website.

Machinists’ strike and troubled defense programs take a toll on balance sheet

Boeing Strives To Turn Corner on Heavy 2024 Losses

Curt Epstein

2024 closed with a flurry of preowned aircraft sales

IADA Dealers Finish 2024 Strong, with Optimism Ahead

News and issues relating to civil and military unmanned aircraft systems (UAS), unmanned aerial vehicles (UAVs) and remotely piloted aircraft systems (RPAS) of all kinds and sizes, including those used for intelligence, surveillance and reconnaissance (ISR), combat (unmanned combat air vehicles, or UCAVs), law enforcement, research and other applications. Of particular focus is the FAA's planned integration of UAS into the U.S. national airspace system.

More In Finance, Taxes, Insurance

Archer Raises Capital To Exploit Military Demand for VTOL Aircraft

Meanwhile, ‘technical delays’ raise questions over efforts to relaunch Lilium’s eVTOL progradm

Charter Flights Face Punitive Passenger Taxes in France

Rates applying from March 1 are up to 300% higher than previous passenger taxes

AINsight: Business Aviation Outlook Shows Wider Transatlantic Gap

U.S. executives hail ‘Trump bump’ but acknowledge some cause for concern

Honeywell Outlines Plan To Separate Aerospace, Automation

Company will become three publicly listed entities in the second half of 2026

Boeing Strives To Turn Corner on Heavy 2024 Losses

Machinists’ strike and troubled defense programs take a toll on balance sheet

IADA Dealers Finish 2024 Strong, with Optimism Ahead

2024 closed with a flurry of preowned aircraft sales

Baykar Signs Preliminary Contract To Acquire Piaggio

Takeover of the Avanti II aircraft’s manufacturer is expected to close in the spring

Investors Back eVTOL Developer Vertical with $84 Million in New Capital

Funding round that closed on January 24 includes two-tier warrants plus new stock

AIN Products

SUBSCRIPTIONS

RESOURCES

ABOUT AIN