Bristow woes

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CharlieOneSix
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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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