MD Helicopters cancels auction, names stalking horse winning bidder

By Sarah Lizee

Olympia, Wash., June 7 – MD Helicopters, Inc. canceled a June 9 auction for the sale of its assets after receiving no other qualified bids other than the stalking horse bidder’s, according to a notice filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The bid deadline was 4 p.m. ET on June 3.

As previously reported, the company entered into a stalking horse agreement with a creditor consortium led by Bardin Hill and MBIA Insurance Corp.

The purchase price is a credit bid against $150 million of debt under a term loan agreement and an assumption by the group of up to $60 million of debtor-in-possession obligations. The credit bid will be increased by the difference between $60 million and the outstanding DIP debt being assumed, up to a maximum increase of $30 million.

The stalking horse agreement does not include a breakup fee, expense reimbursement or any other bid protections.

A sale hearing is slated for June 17.

The Mesa, Ariz.-based helicopter manufacturer filed Chapter 11 bankruptcy on March 30 under case number 22-10263.

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