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Erickson Bankruptcy Reorganization

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Erickson’s Second Amended Joint Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. The U.S. Bankruptcy Court confirmed the Plan on March 22, 2017.

According to BankruptcyData’s detailed Plan Summary, “General Unsecured Claims will receive its pro rata share of the Litigation Trust Interests, for a rate of recovery of 0.11% – 0.44% if Class 5 accepts the Plan and 0.10% – 0.42% if Class 5 rejects the Plan. Erickson Incorporated Interests will be cancelled and released without any distribution.” In addition, “The Liquidation Analysis for Reorganized Erickson Incorporated estimates the Proceeds Available to Creditors to be $158.5 million. The recovery rate to the First Lien Loan Claims is estimated to be 100%. The recovery rates to Existing Second Lien Notes and Unsecured Claims is estimated to be zero.”

Under the Plan, 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. Jeff Roberts, president and C.E.O., comments, “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.”

This aviation services provider filed for Chapter 11 protection on November 8, 2016, listing $602 million in pre-petition assets.

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The post Erickson Bankruptcy Reorganization appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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