Erickson Incorporated Receives Interim DIP Financing Approval

Company Receives Court Approval to Access Up to $49 Million in DIP Term Financing

Global Business Operations to Continue Without Interruption

PORTLAND, Ore., Nov. 11, 2016 (GLOBE NEWSWIRE) -- Erickson Incorporated (NASDAQ:EAC)(the "Company"), a leading global provider of aviation services, announced today that United States Bankruptcy Court for the Northern District of Texas has approved key first day motions related to its voluntary Chapter 11 restructuring. The motions granted by the Court allow Erickson to fulfill current key customer contracts, pay employee wages, honor existing employee benefit programs, pay certain suppliers and foreign creditors, and will ensure that the Company continues normal business operations throughout the financial restructuring process.

The Court has authorized Erickson to immediately access up to $49 million of its $66 million debtor-in-possession term financing. This financing, along with the Company's approved DIP Revolver Financing, will provide sufficient liquidity to fund ongoing operations in the ordinary course of business and will maintain Erickson's longstanding commitment to safety, compliance, and customer service.

At the first day hearing in the Erickson Chapter 11 cases, Judge Harlin Hale granted all of the Company's requested first day relief.  Kenric Kattner of Haynes and Boone, LLP began the hearing by giving an overview of the Chapter 11 cases and Company history, emphasizing the Company's long standing safety record.  Mr. Kattner also explained Erickson's intent to exit bankruptcy quickly, noting that Erickson has agreed to file a plan of reorganization within the first two months of the case.  Eli Columbus, also of Haynes and Boone presented two witnesses in support of the DIP financing proposal.  David Lancelot, Erickson's Chief Restructuring Officer and CFO, testified that creditor's support of the Company combined with the DIP financing, allows us to continue serving our valued customers while creating a platform for growth.

Jeff Roberts, President and CEO of Erickson, was pleased with the results of the hearing, and commented, "We appreciate the work of our team and look forward to continuing the business of providing world class services."

If you liked this article you might like

Erickson (EAC) Stock Soars on U.S. Navy Contracts

3 Stocks Pushing The Aerospace/Defense Industry Lower

8 Small-Cap Aerospace and Defense Stocks to Sell Now

3 Stocks Pushing The Aerospace/Defense Industry Lower

5 Stocks Set to Soar on Bullish Earnings: Herbalife and More