Bristow woes

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Bristow woes

#1 Post by CharlieOneSix » Thu Feb 14, 2019 9:28 am

Things don't look good at Bristow:
HOUSTON, Feb. 11, 2019 /PRNewswire/ -- Bristow Group Inc. (NYSE: BRS) and Columbia Helicopters, Inc. today announced that Bristow and Columbia have mutually agreed to terminate Bristow's agreement to acquire Columbia. In connection with the termination, Bristow has paid $20 million to Columbia. Bristow, Columbia and Columbia's shareholders have agreed to release each other from all claims in connection with the purchase agreement and the related transactions.
On February 11, 2019, the Company disclosed that it “did not have adequate monitoring control processes in place related to non-financial covenants within certain of its secured financing and lease agreements.” The same day, the Company announced that it had terminated its agreement to purchase Columbia Helicopters, Inc. On this news, the Company’s share price fell $1.22 per share, or nearly 40%, to close at $1.84 per share on February 12, 2019, on unusually heavy trading volume.
I wonder whether the UK side of Bristow will be able to continue to pay the annual extra £12m into the pension fund to make good the remaining deficit by July 2022 as planned. Worrying times.
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Re: Bristow woes

#2 Post by FD2 » Thu Feb 14, 2019 9:28 pm

That's bad news C16 for a company with such an amazing history. I hope it survives. By the time I joined it in 1998 we weren't allowed to join the old pension scheme.

A snake oil salesman, masquerading as the HR Director, tried to convince us that we were enrolled with a first class scheme and was not happy when I asked him why the Company had joined a scheme which was so far down the performance league tables! Like many companies Bristow had caught a cold with Equitable Life before then, as had I with a previous company's scheme, and there was nothing we could do to change the 'management's' minds anyway.

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Re: Bristow woes

#3 Post by CharlieOneSix » Thu Feb 14, 2019 10:17 pm

Fortunately the Bristow UK final salary pension scheme is held totally separate from the company accounts. In my case, my Ferranti pension transferred to the BCAL scheme and then to the Bristow scheme when they bought us in 87. It has turned out okay so far but at the last actuarial valuation in April 2018 the funding level was still only 88% - better than many pension schemes though.
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Re: Bristow woes

#4 Post by Cacophonix » Thu Feb 14, 2019 10:37 pm

Sorry to hear this. I trust as a Chief Pilot you are not compromised by the slow failure of British industry?

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Re: Bristow woes

#5 Post by Cacophonix » Fri Feb 15, 2019 6:54 am

Cacophonix wrote:
Thu Feb 14, 2019 10:37 pm
Sorry to hear this. I trust as a Chief Pilot you are not compromised by the slow failure of British industry?

Caco
I was looking at the history of Bristow. It seems the company was badly impacted by the slowdown post 2008 coupled with the low oil price. I trust they bounce back and staff, current and ex are not adversely affected.

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Re: Bristow woes

#6 Post by CharlieOneSix » Fri Feb 15, 2019 9:27 am

As far as the North Sea oil industry helicopter support business is concerned it was a cycle of boom and bust from when I started to be involved in the support business in 73 until I retired in 99. On occasion as soon as a bunch of new pilots were trained up then some were made redundant. In 99 it was 'bust' time again and Bristow was targeting 40 Senior Captains over 55 for 'voluntary' redundancy. Over 55? - we have a package for you if you volunteer for redundancy. If however we don't get the numbers required and select you for compulsory redundancy then it's only the statutory package. Big difference! Hardly voluntary but it suited me.

After Bristow took BCAL Helicopters over in 87 there were 230 pilots on the Bristow ABZ operation. I doubt whether there are more than 100 there now. Boom and bust have gone - North Sea oil production is in a slow decline and that must reflect on companies like Bristow although the current problems seem to be mainly Management self-induced in the US.

It's a funny old world though. In 73 the forecast was that North Sea oil reserves would be depleted by 1990 and then we'd all be looking for jobs elsewhere. Maybe some dramatic discovery will happen to prolong the industry.
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Re: Bristow woes

#7 Post by CharlieOneSix » Mon Mar 04, 2019 2:47 pm

Shamelessly stolen......old CEO departs...
.
pr1.JPG
.
.....new CEO arrives....announces Exciting New Direction (END) for Bristow....
.
pr2.JPG
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Re: Bristow woes

#8 Post by Cacophonix » Mon Mar 04, 2019 3:08 pm

Bailiff's name is also almost sadly apt.

From Bloomberg...
Mr. Jonathan E. Baliff served as the Chief Executive Officer of Bristow Group Inc. (formerly, Offshore Logistics Inc.) since July 31, 2014 until February 28, 2019 and served as its President from June 2014 to November 09, 2018. Mr. Baliff served as a Director of Bristow Group Inc. since 2014 until February 29, 2019. Mr. Baliff provides a critical link between senior management and Bristow Group Board. Mr. Baliff has been a Director of Texas Capital Bancshares, Inc. since July 2017. He has been a Director of HeliOffshore Limited since 2015. He has been a Director of United Way/Jewish Family Service of Houston since 2011. He has been a Member of Advisory Board at Georgetown University Graduate School of Foreign Service since 2010. He previously served as Senior Vice President and Chief Financial Officer of Bristow Group Inc. from October 2010 to June 2014. Prior to joining Bristow, Mr. Baliff served as the Executive Vice President of Strategy at NRG Energy, Inc. from May 2008 to 2010, where he led the development and implementation of NRG's corporate strategy, as well as acquisitions and business alliances. Prior to joining NRG, Mr. Baliff was in Credit Suisse's Global Energy Group, where he advised energy companies on merger and acquisition assignments and project and corporate financings from 1996 to 2008, most recently as a Managing Director. Mr. Baliff started his business career at Standard and Poor's and then JP Morgan's Natural Resources Group. Mr. Baliff served on active duty in the U.S. Air Force for eight years from 1985 to 1993 in numerous assignments flying the F-4G Phantom, including the first combat missions during the first Gulf War. Mr. Baliff retired with the rank of Captain.
https://www.bloomberg.com/research/stoc ... pId=155031


Chase now JP Morgan have a history of hiring ex USAF types who have gone on to stuff other companies up. Lehman's infamous Fuld was also an ex USAF type who left the service in a less than honorable way.

https://en.wikipedia.org/wiki/Richard_S._Fuld_Jr.

Caco, ex Chase employee, leaving when the outriders of additional greed i.e. JP Morgan took over the name.

http://bristowgroup.com/about-bristow/e ... on-miller/
L. Don Miller
President and Chief Executive Officer

Mr. Miller was appointed as President and Chief Executive Officer in February 2019. He previously served as Senior Vice President and Chief Financial Officer from August 2015 to February 2019. Before that he served as our Senior Vice President, Mergers, Acquisitions and Integration from June 2015 to August 2015, our Vice President, Mergers, Acquisitions and Integration from November 2014 to June 2015 and our Vice President, Strategy and Structured Transactions from 2010 to 2014. Prior to joining the Company, Mr. Miller worked as an independent consultant from 2008 to 2010 assisting companies in capital markets and in a financial advisory capacity. He was previously the post-petition President and Chief Executive Officer for Enron North America Corp. and Enron Power Marketing, Inc. from 2001 to 2007 and also served in senior financial positions with Enron, including Director – Finance and Vice President, Asset Marketing Group from 1998 to 2001. His career also includes seven years in senior financial positions with Citicorp Securities, Inc. and four years as an account executive with Dean Witter Reynolds, Inc. Mr. Miller is a Chartered Financial Analyst (“CFA”) charterholder.
This bunch of cowboys are typical asset strippers.

Alan Bristow must be rolling in his grave,


Caco

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Re: Bristow woes

#9 Post by FD2 » Mon Mar 04, 2019 7:24 pm

What would Alan Bristow done at this point, I wonder? Some of the incompetents probably would have had their noses re-arranged for free, but more importantly I'm sure he would have fought a better 'fight' than this lot seem to have.

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Re: Bristow woes

#10 Post by Cacophonix » Mon Mar 04, 2019 8:08 pm

Alan Bristow must be rolling in his grave
Of course Fuld (the wanker banker) and Alan Bristow share two things in common, they are/were both pilots, and both were reputed to have attacked their superior officers or managers in the forces or companies they were serving in! =))

https://www.pen-and-sword.co.uk/Alan-Br ... ack/p/2085

lan Bristow, founder of Bristow Helicopters, died seven days after completing his autobiography. He was a truly remarkable man; his full-page obituary was published in The Times and The Daily Telegraph. As a merchant navy officer cadet during the war Bristow survived two sinkings, played a part in the evacuation of Rangoon and was credited with shooting down two Stukas in North Africa. He joined the Fleet Air Arm and trained as one of the first British helicopter pilots, he was the first man to land a helicopter on a battleship and became Westland's first helicopter test pilot. Sacked for knocking out the sales manager, he flew in France, Holland, Algeria, Senegal and elsewhere, narrowly escaping many helicopter crashes before winning the Croix de Guerre evacuating wounded French soldiers in Indochina. For four years he flew for Aristotle Onassis's pirate whaling fleet in Antarctica before joining Douglas Bader and providing support services to oil drillers in the Persian Gulf. Out of that grew Bristow Helicopters Ltd, the largest helicopter company in the world outside America. Bristow's circle included the great helicopter pioneers such as Igor Sikorsky and Stan Hiller, test pilots like Harold Penrose and Bill Waterton, Sheiks and Shahs and political leaders, business giants like Lord Cayzer and Freddie Laker – with whom he tossed a coin for £67,000 in 1969 – and the author James Clavell, a lifelong friend whose book Whirlwind was a fictionalised account of Bristow's overnight evacuation of his people and helicopters from revolutionary Iran. Bristow represented Great Britain at four in hand carriage driving with the Duke of Edinburgh and precipitated the 'Westland Affair' when he made a takeover bid which eventually led to the resignation of Michael Heseltine and Leon Brittain, and almost to the downfall of Margaret Thatcher
Caco

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Re: Bristow woes

#11 Post by FD2 » Mon Mar 04, 2019 8:48 pm

C16 - thanks for posting the prank communications from the two senior execs.

I did a similar one from the KLM Helicopters BV MD when they lost the whole of the Shell North Sea contract to Bristow. The Dutch side had a strange attitude to the UK company - they took so much money out of it each month that when the accounts were submitted to HMRC each year the UK company was shown as running at a loss. HMRC were very impressed at what they referred to as a very 'creative' accounting scheme!

Sorry about the thread drift C16. I really hope the fat can be pulled out of the fire for the Bristow employees (below board level). I once asked why there was no information given to us employees about who exactly was controlling the UK company - the Board of Directors we were working our socks off for - I was looked at as though I had just farted in church!

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Re: Bristow woes

#12 Post by CharlieOneSix » Mon Mar 04, 2019 11:23 pm

I would have thought an obvious step would be for a UK management buyout (buyback!) of the UK and European businesses. I don't see the oil/gas sector in the UK letting Bristow go to the wall - so many times over the years we've seen the sector prop up one operator or the other so that the industry doesn't end up with just a couple of major players. That was the thinking when BCAL came on the scene in ABZ in 1980 and BP gave us our first contract so that BAH and Bristow were not allowed to dominate the market. I appreciate things are slightly different now with smaller operators also on the scene.

At least the UK Bristow final salary scheme funds are held separately from the operating company. I had a letter a couple of days ago saying that there is a vacancy for the position of one of the two employee selected trustees as one retired pilot isn't renewing his trusteeship after his final three year stint. Not my speciality but I hope someone talented steps up to the mark.
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Re: Bristow woes

#13 Post by FD2 » Mon Mar 04, 2019 11:29 pm

That's good to hear - they can't get their hands on the dosh, Maxwell style.

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Re: Bristow woes

#14 Post by CharlieOneSix » Wed Apr 17, 2019 3:00 pm

It gets worse - looks like the Bristow Group in the US will file for Chapter 11 bankruptcy...
Texas-based Bristow Group said the company and certain subsidiaries may take Chapter 11 bankruptcy as part of efforts to solve the issue, in a filing to the US Government.
Energy Voice - Bristow Group looks at Chapter 11 bankruptcy

Shares are down at 59 cents.......
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Re: Bristow woes

#15 Post by Undried Plum » Wed Apr 17, 2019 3:51 pm

According to its latest set of financial results, Bristow Group has long-term debt of nearly $1.5bn (£1.1bn) including interest, but the firm said yesterday it has liquidity of £154.7m.

Concerns were first raised in February when it announced there were “material weaknesses” in its financial reporting and that its full year results ending March 31 last year “should no longer be relied upon”.

Yesterday the firm said it has brought in financial advisors to address the situation and has deliberately missed a deadline for a £9.5m interest payment.

Ashley Kelty of analyst firm Cantor Fitzgerald, said the announcement suggests Bristow is “on the cusp of bankruptcy” and the weaknesses mentioned by Bristow means the picture “could be even worse”.

The firm said it would consider taking the bankruptcy route as part of its bid to restructure its debt and address the “weaknesses” identified, which relate to helicopter lease agreements.

Bristow has also delayed reporting its third quarter results for this financial year.

A spokesman for Bristow Group said: “We are working with financial and legal advisors to best position the company financially and operationally – that means we are analysing various strategic financial alternatives to address our capital position, including strategic and refinancing alternatives to restructure our debt and other contractual obligations.



I think the above text is beancounterese for saying that the company is fucked.

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Re: Bristow woes

#16 Post by FD2 » Thu Apr 18, 2019 12:43 am

Looks like the sad end we expected. :(

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Re: Bristow woes

#17 Post by CharlieOneSix » Thu Apr 18, 2019 10:36 pm

Global Value Investment Corporation has issued a damning letter to the Bristow Group Board of Directors saying they want the immediate resignation of four Directors. Part of the letter says that the material weakness in internal controls over financial reporting arose solely:
...from the prolonged separation of pledged or leased engines from pledged or leased airframes covered by certain loan or lease agreements. Bristow operates a fleet of nearly 400 aircraft; it is untenable to GVIC that Bristow is unable to track assets worth millions of dollars across a global fleet, or that it has been unable to remedy this material weakness in a timely manner. The cascading failure of financial reporting was created by those entrusted to attentively manage Bristow's assets, which ultimately belong to shareholders.

.......GVIC has lost all confidence in Bristow's Board of Directors and demands new leadership. GVIC will not cease its efforts until it is assured that the interests of Bristow's equity owners are preserved.
In other words nobody had got a clue what was happening!

GVIC calls for immediate resignation of four Directors
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Re: Bristow woes

#18 Post by FD2 » Thu Apr 18, 2019 10:54 pm

What a mess those guys seem to have made of the company. GVIC seems to have pointed the finger directly at the people responsible. Will they be held accountable I wonder?

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Bristow files for Chapter 11 Protection in the U.S. Bankruptcy Court

#19 Post by CharlieOneSix » Sat May 11, 2019 4:08 pm

Hot off the press - just announced:

HOUSTON, May 11, 2019 /PRNewswire/ -- Bristow Group Inc. (NYSE: BRS) ("Bristow" or the "Company") today announced that the Company has voluntarily filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas (the "Bankruptcy Court" or "the Court").
All of Bristow's businesses are operating in the ordinary course and are anticipated to continue to do so for the duration of the Chapter 11 process. The Chapter 11 filings pertain to certain of Bristow's legal entities in the United States and two of its Cayman Islands subsidiaries.

Bristow's other non-U.S. entities, including those holding Bristow's non-U.S. air operating certificates ("AOCs"), are not included in the Chapter 11 filings.
Full text here: Bristow files for Chapter 11 Protection

Sad it has come to this but at least it doesn't affect Bristow in the UK. Alan Bristow must be turning in his grave.
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Re: Bristow woes

#20 Post by FD2 » Sat May 11, 2019 7:56 pm

What a great shame those good old boys in Houston didn't have the ability to run a big world-wide company. I wonder if 'Thomas C. Knudson, Thomas N. Amonette, Lori A. Gobillot, and Biggs C. Porter' are still sucking at the teats and if any other avenues of tackling the debts were seriously explored.

'Turning' C16 - 'spinning' more likely!

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