Bristow group hinted Monday that the next step might be a bankruptcy. The company abruptly canceled an analysts conference call scheduled this afternoon, formally terminating its attempt to acquire Columbia Helicopters for $ 560 million, filed a notification of late filing of the latest quarterly financial results and the nine-month financial results of US Securities and Exchange Commission and admitted "material weakness" in internal controls on financial reporting that goes back at least two years.
In a statement, Bristow said: "The company evaluates whether this material shortcoming in the internal control measures related to financial reporting has led to a deviation in the financial statements of the company included in the annual report on (SEC) Form 10-K for the fiscal year ending March 31, 2018, and the impact on the company's financial statements as of December 31, 2018, including disclosures.The company specifically evaluates whether certain debt balances in these financial statements should be reclassified from long-term to short-term, or, if necessary, , related waivers may be obtained from lenders and the resulting impact on the assessment of the Company's ability to continue as a going concern. "
The helicopter services company has released preliminary financial results showing that it lost at least $ 262.2 million for the nine months ended 31 December 2018 and $ 85.94 million in the fourth quarter alone. These losses, if confirmed, increased sharply, with losses of $ 94.78 million and $ 8.274 million respectively in the same periods of the same year.
At the announcement of the collapse of the Columbia deal, Bristow chairman Thomas Knudson said: "The decision to enter into a reciprocal termination of the purchase agreement was based on a number of developments after the entry into force of the agreement, which both Bristow as Columbia led to conclude that it was not possible to combine the two companies at the moment. "Bristow has paid Columbia a $ 20 million termination fee." Bristow has announced it will take over Columbia in November, but revealed a month later that it was difficult to close the deal.