MD Helicopters’ Chapter 11 bankruptcy case dismissed by court

By Sarah Lizee

Olympia, Wash., April 3 – MD Helicopters, Inc.’s Chapter 11 bankruptcy case was dismissed Friday by the U.S. Bankruptcy Court for the District of Delaware, according to an order.

As previously reported, the company had requested the structured dismissal. The court approved procedures for the process in early January.

Now, the debtors will be allowed to dissolve their corporate entities in line with applicable state laws.

MD Helicopters had one claim outstanding that was to be satisfied, filed by U.S. Customs and Border Protection.

There is ongoing litigation in the Netherlands regarding a $42,912,407 secured claim against the debtors with an ongoing appeal in the Third Circuit Court of Appeals.

The debtors have no funds available to satisfy the general unsecured claims that remain outstanding as the sale process, closed on Aug. 15, 2022, did not generate enough proceeds to satisfy additional outstanding claims.

This includes the $207 million of pre-petition loans that remain outstanding.

A dismissal of the Chapter 11 cases is preferable for the debtors to a case conversion to Chapter 7 as there would only be additional expenses, but no apparent benefit, MD Helicopters has said.

The Mesa, Ariz.-based helicopter manufacturer filed Chapter 11 bankruptcy on March 30, 2022 under case number 22-10263.

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