Solicitation for Votes on the Proposed Reorganization Plan Underway
Goal to Emerge From Chapter 11 Restructuring in the Second Quarter, 2017
PORTLAND, Ore., March 08, 2017 (GLOBE NEWSWIRE) -- Erickson Incorporated, a leading global provider of aviation services, has commenced a joint solicitation of participation in its Rights Offering and votes on its Second Amended Joint Plan of Reorganization. Under the Rights Offering, the Company will offer rights to purchase shares of reorganized Erickson Inc. common stock and new term loans to certain eligible holders of the Company's senior notes.
The Rights Offering will be “backstopped” by certain Investors whereby each of the Investors has agreed, pursuant to the Backstop Agreement, to purchase all Rights Offering Common Stock and Rights Offering Second Lien Loans that are not purchased by other Eligible note holders. In exchange for the commitments under the Backstop Agreement, the Company will pay to the Investors a nonrefundable aggregate premium on the Plan Effective Date in additional shares of New Common Stock.
President and CEO Jeff Roberts said, “Securing the $30 million new capital commitment provided by the backstop agreement is a significant development in our restructuring process. This new investment will enable Erickson to further invest in its operations and prepare Erickson to emerge from Chapter 11.” He added, “The backstop agreement is a strong endorsement from the Company's secured creditors for the long term viability of our business and the substantial value represented by our assets and employees."
The proposed Second Amended Plan of Reorganization, which is currently being solicited for votes from the Company’s creditors, provides for a new, sustainable capital structure that significantly reduces the pre-Chapter 11 filing debt levels, and recapitalizes the Company through the backstopped rights offering.
A hearing for the Bankruptcy Court to consider confirmation of the Plan is currently scheduled for March 21, 2017.
The Rights Offering is governed by the procedures ordered by the Bankruptcy Court and nothing in this press release is intended to change such procedures. This press release is not intended as solicitation for votes on the Plan or participation in the Rights Offering.
Additional details and documents regarding the Rights Offering Procedures, Backstop Agreement, Second Amended Disclosure Statement and Second Amended Joint Plan of Reorganization are available on the Company's Chapter 11 restructuring website at www.kccllc.net/erickson.
About Erickson
Erickson is a leading global provider of aviation services and operates, maintains and manufactures utility aircraft to safely transport and place people and cargo around the world. The Company is self-reliant, multifaceted and operates in remote locations under challenging conditions specializing in Global Defense and Security, Manufacturing and MRO, and Civil Aviation Services (comprised of firefighting, HVAC, transmission line, construction, timber harvesting, oil and gas and specialty lift). With roots dating back to 1960, Erickson operates a fleet of approximately 69 aircraft, is headquartered in Portland, Oregon, USA, and operates in North America, South America, Europe, the Middle East, Africa, Asia Pacific, and Australia. For more information, please visit our website at www.ericksoninc.com.
This press release may contain certain statements relating to future results (including, without limitation, “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “plan,” “expect,” “predict”), which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements, including those relating to the intent, beliefs, plans or expectations of the Company are based upon current expectations and are subject to a number of risks, uncertainties and assumptions. It is not possible to predict or identify all such factors and the following list should not be considered a complete statement of all potential risks and uncertainties relating to the Company, which include, but are not limited to: (i) the Company’s ability to obtain the Bankruptcy Court’s approval with respect to motions or other requests made to the Bankruptcy Court in the Chapter 11 Cases, including maintaining strategic control as debtor-in-possession, (ii) the ability of the Company and its subsidiaries to negotiate, develop, confirm and consummate a plan of reorganization, (iii) the effects of the filing of the bankruptcy petitions on the Company’s business and the interests of various constituents, (iv) the Bankruptcy Court rulings in the Chapter 11 Cases, as well the outcome of all other pending litigation and the outcome of the Chapter 11 Cases in general, (v) the length of time that the Company will operate under Chapter 11 protection and the continued availability of operating capital during the pendency of the Chapter 11 proceedings, (vi) risks associated with third party motions in the Chapter 11 Cases, which may interfere with the Company’s ability to confirm and consummate a plan of reorganization, (vii) the potential adverse effects of the Chapter 11 proceedings on the Company’s liquidity or results of operations, (viii) increased advisory costs to execute the Company’s reorganization, (ix) the impact of the NASDAQ delisting on the Company’s ability to access the public capital markets, (x) the uncertainty that any trading market for the Company’s common stock will exist or develop in the over-the-counter markets, (xi) the findings of the audit committee with respect to errors in the Company’s previously issued financial statement, that the Company may be unable to timely prepare and file financial information correcting the errors and the uncertainty as to whether any additional accounting errors or other issues are identified, (xii) the Company’s ability to continue as a going concern; and other risks disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 and quarterly report on Form 10-Q for the quarter ending June 30, 2016 filed with the U.S. Securities and Exchange Commission These risks and uncertainties could cause actual results to differ materially from those described in the forward-looking statements. You should not place undue reliance on any forward-looking statements. The Company assumes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.