PHI, Inc. has announced that the company and its principal US subsidiaries, including PHI Air Medical, have emerged from Chapter 11 bankruptcy protection, successfully completing the company's debt restructuring process and implementing the Chapter 11 reorganisation plan confirmed by the US Bankruptcy Court for the Northern District of Texas on July 30, 2019. PHI now believes that it has one of the industry's leading debt structures and a strengthened balance sheet that positions it for long-term success.

“Our ability to successfully emerge from bankruptcy less than six months after our Chapter 11 filings and strengthen our balance sheet, while maintaining and continuing to expand our safety and service commitments, is a testament to the hard work of our talented employees and the strength of our relationships with our customers and partners,” PHI chief executive officer Lance Bospflug says. “We have now reached all of the key goals that we set for ourselves at the beginning of this process, including a more sustainable debt structure and a stronger balance sheet. However, this milestone is just the beginning of what we plan to achieve moving forward. We have ambitious plans for our company to support not only our customers and the industries we serve, but also to support our workforce, one of the most highly-skilled and committed workforces in the aviation services industry. We will continue to build on our successes and leadership position as we look to grow, to drive innovation and to better serve our customers for years to come.”

As a result of completing the bankruptcy process, the company reduced its debt by approximately $500 million, with PHI's former unsecured creditors now owning 100 per cent of the company's equity, subject to dilution in connection with future stock issuances including issuances of incentive equity grants to key personnel and potential issuances of stock to the holders of certain warrants issued to former equity holders. In connection with this process, the company also closed a $225 million new five-year term loan and received new equity capital from certain of its former unsecured creditors.

Upon closing, Mr. Al A. Gonsoulin retired from the role of CEO and chairman of the board of PHI. Lance Bospflug has transitioned from serving as president and chief operating officer to become PHI's new chief executive officer and part of the company's new board of directors.

“I am honoured with the responsibility to lead this storied company forward. On behalf of the board of directors and the entire PHI team, I want to thank Al Gonsoulin for his many years of dedicated service and important contributions to so many in our business,” Bospflug continues. “PHI has been a leader in aviation and continues to be recognised as being at the forefront of safety and operations globally. We are grateful to Al for all he has done for the industry and PHI, and we wish him all the best in his retirement.”