MD Helicopters has emerged from the bankruptcy of the former owners of MD Helicopters Inc, Patriarch Partners.
In a deal with MBIA and other Patriarch creditors, debit has been swapped for equity in the new entity MD Helicopters LLC (MDH).
As a result of the deal the bulk of the new company (70.4%) is owned by MBIA Insurance Corporation and its subsidiaries.
Newly appointed CEO Brad Pedersen told RotorHub that the new company’s primary focus would be on stabilising the company, getting the aftermarket business in hand and developing new aircraft sales.
He explained that the core of these three elements would initially be the aftermarket, specifically spares availability for the existing customer base. The company would then turn to new aircraft sales with the goal of increasing 500 series production from the “six or seven” anticipated this year to 15-20 in 2023.
Asked about the future of MD Helicopters’ NOTAR 6 & 900 series, Pedersen said the company would continue to support the aircraft in service but at present had no plans to return them to production as they are or as part of a new product line.
Pressed on the future of NOTAR technology he said that nothing was off the table, adding: “We are not out there actively peddling it but we rule nothing out.”
While the value of the transaction remains undisclosed as a straight equity for debt swap, reports earlier this year suggested the value of the debts held by the company’s new owners was around US$60 million.
It was also made clear that the purchase was only for the assets of MD Helicopters Inc. Any outstanding liabilities remain linked with Patriarch Partners’ Chapter 11 filing.
