PHI, Inc. announced an update in the Company’s Chapter 11 court proceedings, underscoring the positive momentum that the Company has achieved and further executing on the path towards emergence.

Following a successful mediation with Judge David R. Jones, a current sitting judge in the United States Bankruptcy Court for the Southern District of Texas, PHI has reached a settlement agreement with the Official Committee of Unsecured Creditors (“the UCC”) and Thirty Two, LLC that resolves all pending UCC objections and motions and will provide the basis for a consensual Plan of Reorganization. The Company has filed the Agreement with the Bankruptcy Court.

A hearing to approve the Disclosure Statement for PHI’s proposed amended Plan of Reorganization (“the Plan”), which will allow PHI to solicit votes on a consensual plan, has been set for June 18, 2019. PHI expects that it will jointly file an amended and consensual Plan with the UCC prior to this hearing. The Company anticipates that, with the support of the UCC, it will be able to proceed expeditiously towards approval of the Plan. Accordingly, a hearing to confirm the proposed Plan is expected to be scheduled on July 30, 2019. Following that confirmation hearing, if the Court approves the Plan, PHI will consummate the transactions and emerge from Chapter 11.

The Agreement contains certain conditions related to the level of funded debt and available cash of the Company that must be satisfied by the time of the effective date of the Plan of Reorganization. The Company is taking the necessary steps to fulfill these conditions.

Lance Bospflug, PHI’s President and Chief Operating Officer, stated, “This settlement represents a crucial and positive turning point in the case. We are pleased with the progress made so far and are confident that yesterday’s outcome is a strong indicator that we remain on course to achieving a consensual Plan and emergence with the support and partnership of our lenders and the UCC. While we have work to do to satisfy the terms of the agreement, we continue to believe that our Chapter 11 filing and Plan of Reorganization represent the best course of action to address PHI’s matured debt and strengthen our balance sheet, while positioning the Company for continued leadership in our industry and meeting all of our commitments to our stakeholders. Our business has and will continue to operate with the highest standards of safety and quality throughout this process. We are grateful to our employees, customers and vendors for their continued support and partnership throughout this process.”

The Agreement outlines that, if the Plan becomes effective, Al Gonsoulin will retire as the Chief Executive Officer and Chairman of the Board of PHI, and Lance Bospflug will become PHI’s Chief Executive Officer and will be named to the Company’s Board of Directors upon emergence. These management changes are pending the aforementioned approvals of the Company’s Disclosure Statement and Plan of Reorganization.

The Company expects to complete its Chapter 11 process within the previously announced timeline, aiming to emerge in late summer 2019. PHI remains confident that it will emerge with a significantly reduced and more sustainable debt structure, as well as sufficient liquidity, that will position the business for long-term success.

Additional information about the Chapter 11 Cases can be found by visiting the Company’s dedicated microsite: http://restructuring.phihelico.com. Claims information can be found at: https://cases.primeclerk.com/PHI. The Company has also established a hotline to ensure a prompt response to questions, which may be accessed at +1 (844) 216-8745 in the U.S. and Canada or by dialing +1 (347) 761-3249 internationally.