Bloomberg is currently reporting that Air Methods are facing financial challenges to the level of giving serious review of filing for Chapter 11 bankruptcy protection. Quoting unnamed sources, they say that the process could be started as early as the end of October, and is partly driven by a missed loan interest payment earlier this month – for which they have been given an extension.

The US Courts website notes that a case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a “reorganization” bankruptcy. Usually, the debtor remains “in possession”, has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money. A plan of reorganization is proposed, creditors whose rights are affected may vote on the plan, and the plan may be confirmed by the court if it gets the required votes and satisfies certain legal requirements.

Some helicopter operators have used the Chapter 11 process in recent years to walk away from committed orders, such as Bristow and their intended 22 Airbus H175 helicopters.  Other major operators using the same process in recent years have included CHC, Erickson and PHI, while MD Helicopters change ownership through a pre-planned Chapter 11 process in spring 2022.

In less than a week, Air Methods will be at the AMTC conference in Columbus, Ohio. While they plan to highlighting their clinical education division (called “Air Methods Ascend”), we can now expect that the spotlight will be on their financials and where the company is headed in the near future.

HeliHub.com have request a statement from Air Methods, but have yet to receive a response