AI
$BRS has no choice but to file for voluntary Chapter 11 bankruptcy reorganization. Most of its major competitors already filed, which puts $BRS at a competitive disadvantage to them.
MM/dd/YYYY: Bristow Group (date = some time between 05/15-06/19)
03/15/2019: PHI Inc.
11/25/2018: Waypoint Leasing Holdings Ltd.
05/05/2016: CHC Helicopters
Current estimated voluntary Chapter 11 time estimate from here:
https://www.flightglobal.com/news/articles/debt-ridden-helicopter-operator-bristow-warns-on-fut-457523/
$BRS is losing approximately $15M / month based on the cash burn as per their filings:
09/30/2018: $307.8M
04/15/2019: $202.1M
Monthly cash burn rate: $15.1M
$BRS needs to shed the unprofitable helicopter leases, and other unprofitable business segments until they are generating free cash flow, and profits. Chapter 11 allows this to occur. Probably management will target a percentage that ensures healthy profits in the post-bankruptcy environment.
Chapter 11 is a reorganization of a debtor's business affairs, debts, and assets. Corporations generally file Chapter 11 to give the debtor a fresh start, however it won't erase the memory in the market of the failed Columbia Helicopter, or the losses suffered by shareholders and unsecured creditors.
Whats unknown is how $BRS plans to deal with Common shareholders and unsecured creditors. Common stock and unsecured bonds are trading for pennies on the dollar. There's a scenario whereby if $BRS Common trades for $0.01 and unsecured bonds trade for $1, it may be a good PR move on the part of $BRS management to issue fresh stock post-bankruptcy to those classes of holder. This way $BRS can state they haven't wiped them out, the market did that.
Don Miller has a legacy, and time will tell the tale.
"... Don Miller is receiving an annual base salary equal to $700,000 and a target long-term incentive award opportunity equal to $3,000,000. For fiscal year 2019, Mr. Miller’s target bonus opportunity will be $356,354.
In the event of termination Miller will receive two times base salary plus prorated annual incentive target bonus, so around $1,756,354. ..."
https://www.sec.gov/Archives/edgar/data/73887/000007388719000013/brs8-kx3012019.htm
http://www.bristowgroup.com/about-bristow/executive-officers/senior-leadership/don-miller/
MM/dd/YYYY: Bristow Group (date = some time between 05/15-06/19)
03/15/2019: PHI Inc.
11/25/2018: Waypoint Leasing Holdings Ltd.
05/05/2016: CHC Helicopters
Current estimated voluntary Chapter 11 time estimate from here:
https://www.flightglobal.com/news/articles/debt-ridden-helicopter-operator-bristow-warns-on-fut-457523/
$BRS is losing approximately $15M / month based on the cash burn as per their filings:
09/30/2018: $307.8M
04/15/2019: $202.1M
Monthly cash burn rate: $15.1M
$BRS needs to shed the unprofitable helicopter leases, and other unprofitable business segments until they are generating free cash flow, and profits. Chapter 11 allows this to occur. Probably management will target a percentage that ensures healthy profits in the post-bankruptcy environment.
Chapter 11 is a reorganization of a debtor's business affairs, debts, and assets. Corporations generally file Chapter 11 to give the debtor a fresh start, however it won't erase the memory in the market of the failed Columbia Helicopter, or the losses suffered by shareholders and unsecured creditors.
Whats unknown is how $BRS plans to deal with Common shareholders and unsecured creditors. Common stock and unsecured bonds are trading for pennies on the dollar. There's a scenario whereby if $BRS Common trades for $0.01 and unsecured bonds trade for $1, it may be a good PR move on the part of $BRS management to issue fresh stock post-bankruptcy to those classes of holder. This way $BRS can state they haven't wiped them out, the market did that.
Don Miller has a legacy, and time will tell the tale.
"... Don Miller is receiving an annual base salary equal to $700,000 and a target long-term incentive award opportunity equal to $3,000,000. For fiscal year 2019, Mr. Miller’s target bonus opportunity will be $356,354.
In the event of termination Miller will receive two times base salary plus prorated annual incentive target bonus, so around $1,756,354. ..."
https://www.sec.gov/Archives/edgar/data/73887/000007388719000013/brs8-kx3012019.htm
http://www.bristowgroup.com/about-bristow/executive-officers/senior-leadership/don-miller/
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