Reorg Research came out with an article this morning on PHII.
The company is in discussions to equitize the bonds, which would largely wipe out the existing equity:
"An ad hoc group of PHI bondholders represented by Milbank and PJT is planning to propose a full equitization of the helicopter company’s $500 million 5.25% senior notes...The proposal which has not yet been formally prepared or sent to the company would give bondholders substantially all of the equity in a reorganized PHI, with a small amount of warrants for existing shareholders, sources added"
"The sources confirmed that the bondholder group’s advisors have held discussions with DLA Piper and Houlihan Lokey, PHI’s advisors, and have made the company aware of its parameters. The ad hoc group plans to make a formal proposal to the company in coming weeks, the sources said."
The company is distressed after failing to refinance its March 2019 bond maturity:
"The notes mature on March 15. PHI in October 2018 terminated a tender offer for its 5.25% notes, initially launched in June, after extending it multiple times and having failed to obtain the requisite financing to fund it. The notes last traded at 71.75, according to TRACE, compared to trades in the 65 context in late January."
Asset sale efforts appear to have failed as the company ran out of time:
"While at least one shareholder has called for PHI to sell its air medical business as a means of delevering, this could be challenging in the current market environment...Both Air Methods, owned by American Securities, and Air Medical, owned by KKR, have seen their debt come under pressure."