Global aviation services provider Erickson Incorporated recently successfully emerged from the protection of Chapter 11 bankruptcy. After several months of negotiations, the company reportedly satisfied the conditions of their reorganization plan. Like Erickson Incorporated, many struggling Louisiana businesses may benefit from filing this type of bankruptcy.
The company's president and CEO stated that the business, which specializes in civil aviation services as well as other roles, was able to efficiently pay back over $400 million in debt. This was done through the use of a financial restructuring plan that also helped to improve their business model. In addition, Chapter 11 bankruptcy also allowed Erickson to retain enough liquidity to fund future business operations.
Following the reorganization plan, the company is now operating under the ownership of a shareholder group. These shareholders are said to be a diverse group that includes former bondholders in the company. From this point, Erickson will reportedly operate as a privately held small business.
Just as Erickson saved its company by filing Chapter 11 bankruptcy, so too could many other businesses struggling to make ends meet. By filing Chapter 11, businesses are able to restructure their finances so that they can pay off their debts more easily while still keeping their services available for consumers. Any Louisiana business owners who are interested in learning more about the advantages of Chapter 11 bankruptcy may consider consulting an experienced bankruptcy attorney for more information. In addition to assisting clients with navigating the legal proceedings, an attorney could also provide advice and support until the company has successfully completed its reorganization plan.
Source: globenewswire.com, "Erickson Successfully Completes Financial Restructuring and Emerges from Chapter 11", April 28, 2017