(RTTNews) - PHI, Inc. (PHII), a helicopter services company, announced that the company and its its principal U.S. entities filed for voluntary Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Texas. The move is to address the upcoming maturity of PHI's unsecured senior notes and strengthen its balance sheet in order to best position PHI for future success, the company said.

All of PHI's businesses are operating in the ordinary course and are anticipated to continue to do so for the duration of the Chapter 11 process.

According to PHI's Board and management team, this is the best course of action to promote its financial wellbeing, strengthen its competitive position in the industry, and advance the interests of PHI and its stakeholders, while maintaining the Company's commitments to its customers and, above all, the safety of its employees and passengers.

PHI expects to have sufficient liquidity to continue its business operations uninterrupted with existing cash on hand and the net proceeds from the $70 million in funding the Company received on March 13, 2019 under its new term loan with Blue Torch Capital LLC, as well as ongoing cash flows from operations.

The Chapter 11 cases include PHI's principal U.S. entities.

PHI's international operations in Mexico, Canada, Trinidad & Tobago, Cyprus, Ghana, Israel, Saudi Arabia, the Philippines, Australia, and New Zealand are not included in the Chapter 11 cases.

PHI remains in discussions with the holders of its $500 million in unsecured notes and their advisors to consider alternatives to address PHI's outstanding debt obligations. The Company is also engaged in ongoing discussions with its various lessors to address certain of its above-market lease obligations.

PHI said it is working to emerge from bankruptcy in the summer of 2019 with a significantly reduced and more sustainable debt structure that will position the Company for long-term success.