Erickson Incorporated files for Chapter 11 protection
The petition was filed in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division.
During the Chapter 11 process, Erickson will operate in the ordinary course of business and with the same commitment to safety, compliance, and customer service that its partners are accustomed to.
Erickson Incorporated expects to file a consensual plan of reorganization with the support of its major creditor constituencies within the first 50 days of the bankruptcy case.
The company anticipates it will dramatically reduce its total indebtedness and allow it to exit bankruptcy with a stronger balance sheet in early 2017.
Concurrent with its Chapter 11 filing, Erickson has filed certain customary “first day motions”, including a new debtor in possession financing from its first lien lenders and certain of its 2nd lien bondholders, with the court to ensure a smooth transition into Chapter 11.
Pending Court approval, the first day motions will allow the Company to operate in the ordinary course and maintain its critical customer and supplier relationships.
The restructuring is expected to preserve jobs for more than 700 employees and allow Erickson to continue to work with the vendors and suppliers around the world that are so vital to its long term success.
Erickson’s economic impact in its home state of Oregon accounts for nearly $500 million annually, with 300 of the employees based in Oregon. ■