• MD Helicopters has filed for Chapter 11 bankruptcy
  • The company is planning to continue regular operations through the acquisition

MD Helicopters, which traces its roots to Howard Hughes’ tool company in the 1950s, is to be acquired by a creditor consortium led by investment firm Bardin Hill (the former Halcyon Capital) in an asset purchase agreement as the Mesa, Arizona company files for Chapter 11 bankruptcy reorganization.

Alan Carr, who was brought in to prepare the company for sale in the wake of the 2020 resignation as CEO of Arizona businesswoman Lynn Tilton, stated: “After a thorough review of the options available to us, we believe this transaction and court-supervised process will help achieve our objective and create the best path forward for MD and all of our stakeholders.”

The creditor consortium will serve as a “stalking horse bidder” in a court-supervised sale process.

MD is planning to continue regular operations through the process with the aid of $60 million in debtor-in-possession financing. Commercial offerings include the MD 500E, MD 530F, MD 520N, MD 600N, and twin-engine MD 902 Explorer. The MD 530F Cayuse Warrior and MD 530G Attack Helicopter comprise the company’s military offerings. A key feature of the MD 902, MD 600N, and MD 520N is the no-tail-rotor NOTAR system for anti-torque control.

The MD bankruptcy filing is in the wake of two government legal actions. One, a $36.8 million to the US government in which the company was accused of breaking contractor rules through its employment ties to a former US Army procurement officer, who helped win contracts a decade ago with El Salvador, Costa Rica and Saudi Arabia. The second, a $15 million judgment by the Netherlands.

MD currently employs about 250 people.