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MidCap Financial Provides $150MM in Exit Financing to Erickson Inc.

May 08, 2017, 07:04 AM
Filed Under: Bankruptcy

MidCap Financial announced it has provided a $150 million senior credit facility to Erickson Incorporated, a global provider of aviation services. The credit facility supports Erickson’s emergence from Chapter 11 bankruptcy and will provide ongoing working capital.

Erickson announced on April 28 it has successfully emerged from Chapter 11 bankruptcy protection. The company satisfied the conditions of its confirmed plan of reorganization, which became effective following approximately five months of negotiations and court proceedings.

“We are very pleased to have completed our financial restructuring in such an efficient and timely manner. Chapter 11 allowed us to achieve rationalization of our aircraft fleet and delever our balance sheet by over $400 million in debt. We are exiting the restructuring process with significant available liquidity to fund the Company’s present and future business opportunities," said President and CEO Jeff Roberts. “With a stronger financial foundation and reduced cost structure, we are well positioned under the new business model to fund our operations and to further develop and expand our business in order to better serve our customers and enhance value for all stakeholders for years to come.”

As provided in the plan of reorganization, the pre-petition first lien debt was satisfied in full and holders of the Company’s pre-petition second priority senior secured notes received new common stock in exchange for their claims.  The new ownership is comprised of a diverse shareholder group that includes former bondholders. The Company will move forward as a privately-held small business, effective immediately.

As previously announced, Erickson’s plan of reorganization was confirmed by order entered by the United States Bankruptcy Court for the Northern District of Texas on March 22, 2017.


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