Relevant Document:Press Release
This afternoon, Bristow Group Inc provided an update on its efforts to complete its financial reporting process for the quarter ended December 31, 2018. The company has obtained waivers from certain lenders that extend the deadline under its agreements with those lenders for filing its Form 10-Q for the quarter ended December 31, 2018 to June 19, 2019, subject to certain conditions. Bristow has also retained financial and legal advisors to explore strategic financial alternatives, with the objective of strengthening its long-term capital position. It decided that ti would be in the "company's best interest to exercise its contractual right to utilize a contractual grace period of up to 30 days and not make a $12.5 million interest payment on the 6.25% senior notes maturing in 2022 as it continues to work on its overall financing arrangements."
According to President and Chief Executive Officer L. Don Miller, "Bristow is working diligently with its financial and legal advisors to best position the company for the future, both financially and operationally. The steps we are announcing today will afford us additional time to continue our efforts to complete our financial reporting process and address our capital structure. Most importantly, we are, as always, focused on continuity of service in a safe, reliable and professional manner for our valued employees, clients and passengers, as we continue to navigate a challenging market."
"Bristow has obtained waivers of its covenants with its secured equipment financing lenders and asset backed revolving credit facility lenders with respect to the timing of delivery of unaudited financial statements for the quarter ended December 31, 2018. The waivers also include waivers of cross-default provisions arising from the decision to enter the 30-day grace period in connection with the Senior Notes. The waivers have the effect of extending the Company's deadline under its agreements with the lenders to file its 10-Q for the quarter ended December 31, 2018 until June 19, 2019, subject to certain conditions, including securing customary forbearance agreements with certain other debtholders as detailed in the Company's 8-K filing today.
There can be no assurance that this review will result in any particular outcome, or that the Company will succeed in obtaining the forbearance agreements referred to above.
As of April 12, 2019, the Company had approximately $202.1 million of liquidity, consisting of aggregate cash on hand and availability under its ABL facility.
As part of the strategic financial review process, Bristow has elected
not to make an interest payment of approximately $12.5 million due April 15, 2019 on the Senior Notes. Under the terms of the relevant indenture, the Company has a contractual grace period of up to 30 days during which it may elect to make the interest payment and cure any related default. Bristow believes it is in its best interest to use the grace period to continue working with its advisors and creditors to review alternatives for improving its capital structure."
More to come...