Bristow seeks OK of settlement tied to €23.37 million rejection claim

By Caroline Salls

Pittsburgh, Sept. 30 – Bristow Group Inc. requested court approval of a settlement with Airbus Helicopters SAS related to the attempted rejection of a helicopter purchase agreement, according to a motion filed Monday with the U.S. Bankruptcy Court for the Southern District of Texas.

As part of the Chapter 11 process, Bristow said it has identified cost savings to be achieved through a fleet reduction, and the company evaluated the need to add additional helicopters to its fleet after emergence from Chapter 11.

The company said it determined that there is not a need based on current market conditions to increase the debtors’ fleet by 22 helicopters, as expected under the purchase agreement, at this time. This led to the motion to reject the purchase agreement.

However, Bristow said rejecting the purchase agreement without the proposed settlement would have left various issues unresolved, including a deposit of €23.37 million held by Airbus that may have resulted in a large rejection damages claim.

The company said the settlement will bring €11.69 million back into the estate, comprised of a €5.84 million cash payment and a €5.84 million credit for the Bristow debtors to apply toward future new aircraft purchase orders.

Also under the proposed settlement, Airbus has agreed to withdraw its claim.

A hearing is scheduled for Oct. 3.

Bristow is a Houston-based offshore transportation services provider to the oil and gas industry that filed bankruptcy on May 11. The Chapter 11 case number is 19-32713.

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