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Erickson files for Chapter 11 bankruptcy Heavy-lift helicopter manufacturer and operator Erickson Air-Crane has filed Chapter 11 bankruptcy. Mail Tribune file photo Wednesday Nov 9, 2016 at 9:48 AM Nov 9, 2016 at 4:32 PM Greg Stiles Mail Tribune @GregMTBusiness Aviation firm Erickson, whose major manufacturing and maintenance operations are conducted in Jackson County, has filed for Chapter 11 court protection. Beset by debt and hurt by declining of global oil exploration, Erickson filed in the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division. In a statement released this morning, Erickson said it will operate in the ordinary course of business. The restructuring is expected to preserve more than 700 jobs globally and 300 in Oregon. "The company expects to file a consensual plan of reorganization with the support of its major creditor constituencies within the first 50 days of the bankruptcy case ... dramatically (reducing) its total indebtedness and allow it to exit bankruptcy with a stronger balance sheet in early 2017," Erickson stated in the release. “Unfortunately, Erickson is not immune to the numerous business challenges currently facing the helicopter industry which have placed downward pressure on operating results and asset values," President and CEO Jeff Roberts said in a statement. "Operational integrity and safety continue to be our top priority, and this restructuring will in no way interfere with our performance and commitment to customer satisfaction. We have examined a number of alternatives and are convinced that a formal restructuring is the most effective path forward. We anticipate a controlled process that better positions us to serve our customers." Pending court approval, by presiding Judge Barbara J. Houser, Erickson's first day motions will allow the company to operate as usual and maintain its customer and supplier relationships. Erickson's highly leveraged, $298 million acquisition of Evergreen Helicopters in 2013 mushroomed to $561 million debt as global energy prices fell, leading to cutbacks in the kind of services the company provided. Erickson also lost key government contracts, hitting both its revenue and bottom line. In the release, CFO David Lancelot said Erickson concurs with a support agreement its lenders and noteholders have submitted, which is expected to result in approximately $60 million in new financing from present noteholders. That would help reduce the company's debt ratios. "This financing will provide sufficient liquidity to fund ongoing operations in the ordinary course during our restructuring," Lancelot stated. "We believe this agreement is indicative of broad support for a consensual restructuring. We believe that Erickson will emerge a financially stronger company at the conclusion of an expeditious bankruptcy process.” Erickson was founded by Jack Erickson in  1971. It has a fleet of 69 aircraft, including its Sikorsky aircranes and has an economic impact in Oregon is $500 million annually. An Erickson spokeswoman said the company would have no further comment beyond what was contained in the release.  Haynes and Boone is serving as Erickson's legal adviser and Alvarez & Marsal — the same company that provided services for Harry & David — will be its restructuring adviser.             — Reach reporter Greg Stiles at 541-776-4463 or [email protected]. Follow him on Twitter at www.twitter.com/GregMTBusiness, on Facebook at www.facebook.com/greg.stiles.31.