Erickson Incorporated completed another important step toward its emergence from bankruptcy when its Chapter 11 plan of reorganization was confirmed by the United States Bankruptcy Court for the Northern District of Texas. This confirmation, which comes less than five months after Erickson and its subsidiaries filed for bankruptcy protection under Chapter 11 of the Unites States Bankruptcy Code, clears the way for Erickson to emerge from bankruptcy.

Erickson’s restructuring will reduce the company’s pre-bankruptcy debt by more than $400 million upon emergence. In order to improve its capital structure and finance its exit from bankruptcy, Erickson was able to (i) obtain a commitment for an asset-based lending facility with a borrowing capacity of up to $150 million, led by MidCap Financial Trust, (ii) reach an agreement on non-cash repayment for $69.8 million in financing obtained during the bankruptcy, and (iii) secure a backstopped $20 million rights offering.

“These financial commitments demonstrate the creditor interest and support in restructuring Erickson’s financial affairs, servicing customer contracts, and enabling Erickson to continue operating well into the future.  I am pleased and appreciative of our employees, customers and stakeholders who have supported us throughout this challenging process,” said Erickson president and CEO Jeff Roberts. With the overwhelming support of all classes of creditors entitled to vote on the plan, Erickson will emerge from bankruptcy with the ability to grow its existing business segments of civil aviation, global defense and security, and manufacturing and MRO.

“Erickson is extremely satisfied with this quick and successful outcome,” said Erickson CFO David Lancelot. “Erickson’s successful restructuring would not have been possible without the strong support of our funded debtholders and aircraft lessors. The financial impact of this approved plan is very positive and allows us to be far more strategic to compete in the competitive landscape.  Haynes and Boone, LLP is Erickson’s restructuring counsel and other restructuring professionals included Imperial Capital, LLC and Alvarez and Marsal North America, LLC.