Erickson files for bankruptcy

aircrane

Above: An Erickson Aircrane reloads with retardant while fighting the Beaver Fire in northern California, August 12, 2014. Photo by Bill Gabbert.

On Monday, November 8, 2016 Erickson Incorporated filed for Chapter 11 Bankruptcy. The company called it a financial restructuring, saying the company will continue to operate “in the ordinary course of business” and they are “committed to the same level of operational integrity, safety, compliance, and customer service that its partners are accustomed to.”

Between March, 2012 and April, 2016 the company had eight Type 1 Aircrane helicopters on contract with the U.S. Forest Service. When the next round of contracts was announced in February, 2016 conspicuous by its absence was Erickson, receiving none. It is likely that when they purchased Evergreen Helicopters, Inc. in March, 2013 (and their 64 aircraft) and the Brazilian company Air Amazonia (and their 14 helicopters in November, 2012), they no longer qualified as a “small business” and lost their eligibility to compete for USFS firefighting contracts.

These large helicopters can carry up to 2,500 gallons of water. Erickson bought the manufacturing license and type certificate from Sikorsky in 1992 for the military version, the CH-54 Tarhe. In addition to dropping thousands of gallons of water, it can be fitted with an optional front-mounted water cannon that can shoot water horizontally at 300 gallons per minute.

Monday Erickson provided more information about the bankruptcy:

…Under Bankruptcy Court supervision, the Company expects to file a consensual plan of reorganization with the support of its major creditor constituencies which the Company anticipates will significantly reduce its total indebtedness. Additionally, our first lien lenders and second lien noteholders have entered into a credit support agreement which is expected to result in approximately $60 million in new financing to further fund ongoing operations over the course of the restructuring.

2 thoughts on “Erickson files for bankruptcy”

  1. It isn’t “likely” that they don’t qualify as a Small Business, that’s exactly what happened. They knew it going into it but thought they had enough International projects going so they didn’t need USFS contracts anymore.

    A side note, they are a publicly traded company, since their stock price has been below $1/share for so long the Dow is preparing to drop their stock completely, if they are already haven’t.

    Really sucks that they tried to get so big so fast, they have a lot of good people working for them that will most likely lose their jobs.

    1. Part of the problem is that Erickson did not want to buy evergreen but a major stock holder pushed them into buying and then after the deal sold all of their stock. I feel that Erickson will come out on top at the end.

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