PHI Inc. Downgraded To 'D' From 'CCC-' After Filing For Chapter 11 Bankruptcy


  • U.S.-based helicopter service provider PHI Inc. filed for Chapter 11 bankruptcy on March 14, 2019.
  • As a result, we lowered our issuer credit rating on PHI to 'D' from 'CCC-'.
  • We also lowered the senior unsecured issue-level rating to 'D' from 'CCC'. The recovery rating on this debt is '2', indicating our expectation of substantial (70%-90%; rounded estimate: 75%) recovery for creditors.
NEW YORK (S&P Global Ratings) March 15, 2019—S&P Global Ratings today took the 
rating actions listed above.  The downgrade reflects PHI's bankruptcy filing 
and failure to retire or refinance its $500 million 5.25% unsecured notes 
before the March 15, 2019 maturity date. We expect to withdraw the ratings 
after 30 days.

The company continues to negotiate with unsecured noteholders regarding its 
outstanding debt obligations and is in discussions to address above-market 
leases with certain lessors. Meanwhile, PHI's business operations will 
continue to be funded by cash on hand, cash flows from operations, and a new 
$70 million term loan from Blue Torch Capital. The Chapter 11 cases will only 
include PHI's principal U.S. entities, and the company expects to emerge from 
bankruptcy in summer 2019.
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