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| 8-K - FORM 8-K - ERICKSON INC. | decmorsubmission.htm |
1
Monthly Operating Report
ACCRUAL BASIS
CASE NAME: Erickson Incorporated
CASE NUMBER: 16-34393
JUDGE: Harlin D. Hale
UNITED STATES BANKRUPTCY COURT
NORTHERN & EASTERN DISTRICTS OF TEXAS
REGION 6
MONTHLY OPERATING REPORT
MONTH ENDING: December 2016
MONTH YEAR
IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE UNDER
PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT
(ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-7) AND THE ACCOMPANYING ATTACHMENTS AND,
TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT, AND COMPLETE.
DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY) IS BASED ON ALL
INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.
RESPONSIBLE PARTY:
/s/ David Lancelot Chief Restructuring Officer
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
David Lancelot 1/30/2017
PRINTED NAME OF RESPONSIBLE PARTY
PREPARER:
DATE
/s/ Craig Eastwood Controller
ORIGINAL SIGNATURE OF PREPARER
TITLE
Craig Eastwood 1/30/2017
PRINTED NAME OF PREPARER
DATE
2
GENERAL NOTES:
• This Monthly Operating Report (the “MOR”) has been filed on a deconsolidated basis for Erickson
Incorporated (7561); EAC Acquisition Corporation (3733); Erickson Helicopters, Inc. (5052);
Erickson Transport, Inc. (9162); Evergreen Helicopters International, Inc. (1311); Evergreen Equity,
Inc. (9209); and Evergreen Unmanned Systems, Inc. (3961) (collectively, the “Debtors”). The
Debtors do not maintain separate financial books and records for Debtors EAC Acquisition
Corporation, Erickson Transport, Inc., Evergreen Helicopters International, Inc., Evergreen Equity,
Inc., and Evergreen Unmanned Systems, Inc. Financial activity for all Debtors, including all
disbursements made by the Debtors, is aggregated and reported in the books and records of Erickson
Incorporated and Erickson Helicopters, Inc.
• MORs for Debtors EAC Acquisition Corporation, Erickson Transport, Inc., Evergreen Helicopters
International, Inc., Evergreen Equity, Inc., and Evergreen Unmanned Systems, Inc. do not include any
related balances or activity given the lack of material transactions for sections 1 – 6. However, any
potential activity for these entities is reported and disclosed in the MORs for Erickson Incorporated
and Erickson Helicopters, Inc. Readers should refer to the MORs for Erickson Incorporated and
Erickson Helicopters, Inc. for further information.
• The Debtors have reported information in the MOR as it is maintained in their books and records. On
November 8, 2016, each of the Debtors filed a voluntary petition with the United States Bankruptcy
Court for the Northern District of Texas for reorganization relief under chapter 11 of title 11 of the
United States Code. The cases were consolidated for procedural purposes only under Case No. 16-
34393.
• The Company cautions investors and potential investors not to place undue reliance upon the
information contained in the Monthly Operating Report which was not prepared for the purpose of
providing the basis for an investment decision relating to any of the securities of the Company. The
Monthly Operating Report is limited in scope, covers limited time periods, and has been prepared
solely for the purpose of complying with the monthly reporting requirements of the Bankruptcy
Court. The Monthly Operating Report was not audited or reviewed by independent accountants, was
not prepared in accordance with U.S. generally accepted accounting principles, is in a format
prescribed by applicable bankruptcy laws, and is subject to future adjustment and reconciliation.
There can be no assurance that, from the perspective of an investor or potential investor in the
Company’s securities, the Monthly Operating Report is complete. The Monthly Operating Report
also contains information for periods which are shorter and otherwise different from those required in
the Company’s periodic reports pursuant to the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), and such information might not be indicative of the Company’s financial condition
or operating results for a period that would be reflected in the Company’s financial statements or in
its report pursuant to the Exchange Act. Information set forth in the Monthly Operating Report should
not be viewed as indicative of future results.
• The Debtors use a centralized cash management system. See the Cash Management motion filed on
November 9, 2016 [Docket No. 008] for a full description of the Debtors’ cash management system.
3
• For financial reporting purposes, the Debtors generally prepare consolidated financial statements. On
December 14, 2016, the Debtors filed their Schedules of Assets and Liabilities and the Statement of
Financial Affairs (the “Statements and Schedules”). As described in the global notes to the
Statements and Schedules and above, the Debtors do not maintain separate financial books and
records for certain Debtors. Information is reported in the MOR as it is maintained in the Debtors’
books and records, consistent with the Statements and Schedules.
• As noted in the global notes to the Statements and Schedules, Schedule AB information is based
largely on the Debtors’ October 31, 2016 trial balance. The Debtors have reported the ‘Schedule
Amount’ in the MOR based on the Debtors’ October 31, 2016 trial balance, however variances
between the Statements and Schedules and the MOR may exist. These variances are on account of,
among other things: recategorization of certain assets to more closely match Schedule AB questions,
and listing of certain values as ‘undetermined’ in Schedule AB and at book value in the MOR (e.g. IP,
Goodwill, etc).
• The MOR is not meant to be relied upon as a complete description of the Debtors, their businesses or
condition (financial or otherwise), or their results of operations, prospects, assets or liabilities. The
Debtors reserve all rights to revise this MOR. This MOR is not prepared in accordance with U.S.
generally accepted accounting principles (“GAAP”). This MOR should be read in conjunction with
the previously filed financial statements and accompanying notes in the Company’s annual and
quarterly reports that are filed with the United States Securities and Exchange Commission. Certain
exceptions as listed below are not exhaustive of all non-GAAP compliance:
o The financial statements are unaudited and will not be subject to audit or review by the
Debtors’ external auditors at any time in the future and are subject to change.
o The MOR does not reflect all normal quarterly adjustments that are generally recorded by the
Debtor upon review of major accounts period to the end of each quarterly accounting period.
o Certain items presented in this MOR are not fully known or under research and may be
accounted for differently in future monthly reports. Please note:
Prepetition liabilities could materially increase in the future, on account of, among
others, potential rejection of certain aircraft and non-craft leases.
As previously disclosed in an 8-K filed on November 9th, 2016, the Company
advised investors not to rely on previously issued consolidated financial statements
for the years ended December 31, 2015 and 2014 and its quarterly financial
information for each of the quarterly and year-to-date periods ended March 31, June
30, and September 30, for the years 2015 and 2014, and the quarterly and year-to-
date periods ended March 31 and June 30, 2016, because of certain errors within the
financial statements. In the 8-K, the Company disclosed that it had discovered an
estimated $13.8 million understatement of current liabilities and return-to-service
expense as the net cumulative effect of these errors through June 30, 2016. The
Monthly Operating Reports being filed during bankruptcy will not include the full
amount of the Company’s Return-to-Service liability, primarily due to changes in the
status of many of the leases and related leased aircraft in question.
o The MOR does not include explanatory footnotes such as disclosures required under GAAP.
o The MOR is not presented in GAAP-based SEC reporting format.
4
Monthly Operating Report
ACCRUAL BASIS-1
CASE NAME: Erickson Incorporated
CASE NUMBER: 16-34393
See Attached Rider
COMPARATIVE BALANCE SHEET
SCHEDULE
AMOUNT
MONTH
MONTH
MONTH
ASSETS
1. UNRESTRICTED CASH
2. RESTRICTED CASH
3. TOTAL CASH $0 $0 $0 $0
4. ACCOUNTS RECEIVABLE (NET)
5. INVENTORY
6. NOTES RECEIVABLE
7. PREPAID EXPENSES
8. OTHER (ATTACH LIST)
9. TOTAL CURRENT ASSETS $0 $0 $0 $0
10. PROPERTY, PLANT & EQUIPMENT
11. LESS: ACCUMULATED
DEPRECIATION/DEPLETION
12. NET PROPERTY, PLANT & EQUIPMENT
$0
$0
$0
$0
13. DUE FROM INSIDERS
14. OTHER ASSETS - NET OF
AMORTIZATION (ATTACH LIST)
15. OTHER (ATTACH LIST)
16. TOTAL ASSETS $0 $0 $0 $0
POSTPETITION LIABILITIES
17. ACCOUNTS PAYABLE
18. TAXES PAYABLE
19. NOTES PAYABLE
20. PROFESSIONAL FEES
21. SECURED DEBT
22. OTHER (ATTACH LIST)
23. TOTAL POSTPETITION LIABILITIES $0 $0 $0
PREPETITION LIABILITIES
24. SECURED DEBT
25. PRIORITY DEBT
26. UNSECURED DEBT
27. OTHER (ATTACH LIST)
28. TOTAL PREPETITION LIABILITIES $0 $0 $0 $0
29. TOTAL LIABILITIES $0 $0 $0 $0
EQUITY
30. PREPETITION OWNERS' EQUITY
31. POSTPETITION CUMULATIVE
PROFIT OR (LOSS)
32. DIRECT CHARGES TO EQUITY
(ATTACH EXPLANATION)
33. TOTAL EQUITY $0 $0 $0
34. TOTAL LIABILITIES & OWNERS'
EQUITY
$0
$0
$0
5
Erickson Incorporated
Case Number: 16-34393
Comparative Balance Sheet
Monthly Operating Report
Accrual Basis-1 (pg 1 of 3)
12/31/2016
EAC EHI
Schedule Amount 11/30/2016 12/31/2016 Schedule Amount 11/30/2016 12/31/2016
Assets
1. Unrestricted Cash 1,139,095 3,322,354 2,423,804 294,824 182,360 306,690
2. Restricted Cash - - 100,000 - - -
3. Total Cash 1,139,095 3,322,354 2,523,804 294,824 182,360 306,690
4. Accounts Receivable 23,365,972 23,247,543 16,794,834 17,312,527 17,206,192 17,043,436
5. Inventory 1 - - - - - -
6. Notes Receivable 2 310,470,056 310,470,056 306,598,914 - - -
7. Prepaid Expenses 4,995,783 5,201,848 5,898,816 1,565,262 1,480,562 1,496,870
8. Other (Attach List) 1,507,108 1,522,854 1,991,891 252,444 252,444 252,444
9. Total Current Assets 340,338,919 340,442,301 331,284,456 19,130,233 18,939,198 18,792,750
10. Property Plant and Equipment 40,457,975 37,923,364 42,471,275 6,975,211 6,912,529 6,796,126
11. Less: Accumulated Depreciation/Depletion (23,338,252) (23,000,461) (23,270,611) (2,680,714) (2,766,788) (2,857,079)
12. Net Property, Plant and Equipment 17,119,723 14,922,903 19,200,664 4,294,497 4,145,741 3,939,048
13. Due From Insiders - - - - - -
14. Other Assets - Net of Amortization 99,990,462 98,676,876 98,804,149 44,699,196 57,850,063 54,493,345
15. Other (Attach Lists) 129,329,347 128,065,314 119,646,908 224,737,325 226,615,668 228,889,341
16. Total Assets 587,917,546 585,429,748 571,459,980 293,156,075 307,733,029 306,421,174
Postpetition Liabilities
17. Accounts Payable 795,683 5,136,310 3,717,764 6,537,808
18. Taxes Payable 3 - 226,539 - -
19. Notes Payable - - - -
20. Professional Fees 4 2,485,900 5,050,898 - -
21. Secured Debt 5 - - - -
22. Other (Attach List) 37,437,808 64,955,276 11,848,159 4,507,917
23. Total Postpetition Liabilities 40,719,392 75,369,023 15,565,922 11,045,725
Prepetition Liabilities 6
24. Secured Debt 7. 8 470,829,818 450,980,996 429,370,891 - - -
25. Priority Debt - - - - - -
26. Unsecured Debt 18,610,303 18,630,758 18,609,700 3,752,777 3,720,731 3,688,359
27. Other (Attach List) 46,427,130 39,189,532 34,902,529 24,741,892 21,219,478 20,707,831
28. Total Prepetition Liabilities 535,867,251 508,801,287 482,883,120 28,494,669 24,940,209 24,396,190
29. Total Liabilities 535,867,251 549,520,678 558,252,144 28,494,669 40,506,131 35,441,915
Equity
30. Prepetition Owners' Equity 9 52,050,295 45,114,266 45,114,266 264,661,406 264,991,485 264,991,485
31. Postpetition Cumulative Profit or (Loss) - (8,979,380) (32,794,043) - 2,235,413 5,987,774
32. Direct Charges to Equity (Attach Explanation) - (225,816) 887,613 - - -
33. Total Equity 52,050,295 35,909,070 13,207,836 264,661,406 267,226,898 270,979,259
34. Total Liabilities & Owners' Equity 587,917,546 585,429,748 571,459,980 293,156,075 307,733,029 306,421,174
1 Note that inventory is classified as a Long Term Asset on the company's books, as such it has been included in line 15 'Other' assets
2 The Note Receivable balance relates to Investments in Subsidiary companies.
3 The Taxes Payable balance (as reported in Accrual Basis-4) is incorporated in the Debtors' books and records as part of the sub schedule for line 22 'Other'
liabilities as Accrued Payroll and Related Taxes.
4 The Debtors have refined their methodology for professional fee accruals, resulting in updates to certain previously-reported items.
5 The unpaid Postpetition Lease balance from Accrual Basis-6 is captured within the Accounts Payable or Other Accrued Liabilities balance.
6 Creditors may have claims against multiple legal entities.
7 As of 11/30/2016, the Secured Debt consists of $349M in Bonds Payable net of debt issuance costs, $101.7M in Asset Based Revolving Debt net of debt issuance
costs and $115.8k in financed furniture. As of 12/31/16, the Secured Debt consists of $349M in Bonds Payable net of debt issuance costs, $79.9M in Asset Based
Revolving Debt net of debt issuance costs and $115.8k in financed furniture.
8 As more fully described in the First Day Declaration of David Lancelot [Docket No. 038], Erickson, Incorporated is the borrower and issuer under the First Lien
Credit Facility and Second Priority Notes, Erickson Helicopters, Inc. is a borrower under the First Lien Credit Facility, and the remaining Debtors are guarantors
under both the First Lien Credit Facility and the Second Priority Notes.
9 The Change in Prepetition Owners' Equity between 10/31/2016 and 11/8/2016 is a result of prepetition business operations.
6
Erickson Incorporated
Case Number: 16-34393
Comparative Balance Sheet
Monthly Operating Report
Accrual Basis-1 (pg 2 of 3)
12/31/2016
8. Other Current Assets
EAC EHI
Schedule Amount 11/30/2016 12/31/2016 Schedule Amount 11/30/2016 12/31/2016
Other Current Assets
1. Income Tax Receivable 1,255,471 1,271,217 2,065,555 252,444 252,444 252,444
2. Costs in Excess of Billings - - - - - -
3. Deferred Tax Assets (Current) 251,637 251,637 (73,664) - - -
Total Other Current Assets 1,507,108 1,522,854 1,991,891 252,444 252,444 252,444
15. Other LT Assets
EAC EHI
Schedule Amount 11/30/2016 12/31/2016 Schedule Amount 11/30/2016 12/31/2016
Other LT Assets
1. Assets Held for Sale 1,500,000 1,500,000 1,500,000 4,510,411 4,510,411 7,082,618
2. Goodwill and Other Intangible Assets 2,205,093 2,205,093 2,205,093 172,327,289 172,148,585 171,969,881
3. Allowance for Doubtful Accounts - LT (4,815,811) (4,815,811) (4,656,065) - - -
4. Deposits - LT 1,272,762 1,576,014 2,671,995 7,859,306 8,342,274 8,884,271
5. Other noncurrent assets 40,444 39,503 38,563 9,634 8,422 7,199
6. Other Assets Forward Contracts - - - - - -
7. Noncurrent Accounts Receivable 4,845,459 4,704,741 4,656,065 - - -
8. Inventory Prepaid - - - 10,000 10,000 10,000
9. Notes Receivable - EIA Working Capital Adj - - - - - -
10. Notes Receivable - EIA Working Capital Adj - discount - - - - - -
11. Investments - SIMA - - - - - -
12. Investments - Layang Layang - - - - - -
13. Reserve - Investment Layang Layang - - - - - -
14. Investments - COMAI - - - - - -
15. Deferred Tax Assets - Non Current 228,792 228,792 219,583 0 0 0
16. Aircraft Support Parts 124,052,608 122,626,981 113,011,674 40,020,686 41,595,975 40,935,373
Total Other LT Assets 129,329,347 128,065,314 119,646,908 224,737,325 226,615,668 228,889,341
22. Other Postpetition Liabilities
EAC EHI
Schedule Amount 11/30/2016 12/31/2016 Schedule Amount 11/30/2016 12/31/2016
Other Postpetition Liabilities
1. Accrued Payroll and Related Taxes 5,583,922 6,003,459 12,184 12,184
2. Customer Advance Payments - - - -
3. Accrued Interest 1 2,232,239 5,195,678 37,873 37,544
4. Forward Contracts 56,093 - - -
5. Return to Service Liability - - - -
6. Deferred Revenue 278,240 290,640 595,400 186
7. Mobilization Expense Accrual (48,081) 1,569,064 - 75,000
8. Venue Expense Accrual 260,004 551,679 - -
9. Other Accrued Liabilities 1,134,633 2,231,549 63,475 60,352
10. Intercompany (10,209,752) 64,012 11,139,167 4,322,651
11. Deferred Tax Liability - 140,384 - -
12. Other LT Liabilities 260,147 276,525 60 -
13. Uncertain Tax Position - (4,394) - -
14. Debtor in Possession Financing 37,890,364 48,636,681 - -
Total Other Postpetition Liabilities 37,437,808 64,955,276 11,848,159 4,507,917
1 Debtors are continuing to accrue interest on account of Second Lien debt, but despite the accrual claimants may not be entitled to postpetition interest.
7
Erickson Incorporated
Case Number: 16-34393
Comparative Balance Sheet
Monthly Operating Report
Accrual Basis-1 (pg 3 of 3)
12/31/2016
27. Other Prepetition Liabilities
EAC EHI
Schedule Amount 11/30/2016 12/31/2016 Schedule Amount 11/30/2016 12/31/2016
Other Prepetition Liabilities
1. Accounts Payable 1 13,004,006 10,395,759 8,016,046 16,209,390 15,478,157 15,498,128
2. Taxes Payable 63,836 63,836 63,836 - - -
3. Notes Payable - - - - - -
4. Professional Fees 72,495 57,915 57,930 - - -
5. Accrued Payroll and Related Taxes 5,099,356 10,173
6. Customer Advance Payments - - - - - -
7. Accrued Interest 15,934,652 15,840,681 15,702,002 47,751 - -
8. Forward Contracts 112,520 - - - - -
9. Return to Service Liability - - - 900,000 900,000 900,000
10. Deferred Revenue 627,266 627,266 627,266 - - -
11. Mobilization Expense Accrual 1,520,651 1,519,001 - 75,000 75,000 -
12. Venue Expense Accrual 88,199 20,128 - - - -
13. Other Accrued Liabilities 10,621,812 10,995,105 10,936,044 4,860,599 4,771,319 4,624,723
14. Intercompany (14,368,650) (12,790,110) (12,790,110) (4,636,144) (6,967,598) (6,967,598)
15. Deferred Tax Liability 2,024,465 2,024,465 2,024,465 - - -
16. Other LT Liabilities 10,454,534 9,263,497 9,093,063 7,275,123 6,962,600 6,652,578
17. Uncertain Tax Position 1,171,988 1,171,988 1,171,988 - - -
Total Other Prepetition Liabilities 46,427,130 39,189,532 34,902,529 24,741,892 21,219,478 20,707,831
32. Direct Charges to Equity
EAC EHI
Schedule Amount 11/30/2016 12/31/2016 Schedule Amount 11/30/2016 12/31/2016
Direct Charges to Equity
Cumulative Translation Adjustment (233,550) 102,052 - -
Additional Paid In Capital 7,734 10,898 - -
Other Comprehensive Income Adjustment 2 - 1,000,479 - -
Total Direct Charges to Equity (225,816) 1,113,429 - -
1 This balance may fluctuate due to the receipt of additional prepetition invoices as well as the matching of payments made versus goods received.
2 Given the rapid downturn in the oil & gas market soon after the acquisition management has made the decision to divest of the Air Amazonia subsidiary.
8
CASE NAME: Erickson Incorporated
CASE NUMBER: 16-34393
Monthly Operating Report
ACCRUAL BASIS-2
See Attached Rider
INCOME STATEMENT MONTH MONTH MONTH MONTH
REVENUES
1. GROSS REVENUES
2. LESS: RETURNS & DISCOUNTS
3. NET REVENUE $0 $0 $0 $0
COST OF GOODS SOLD
4. MATERIAL
5. DIRECT LABOR
6. DIRECT OVERHEAD
7. TOTAL COST OF GOODS SOLD $0 $0 $0 $0
8. GROSS PROFIT $0 $0 $0 $0
OPERATING EXPENSES
9. OFFICER / INSIDER COMPENSATION
10. SELLING & MARKETING
11. GENERAL & ADMINISTRATIVE
12. RENT & LEASE
13. OTHER (ATTACH LIST)
14. TOTAL OPERATING EXPENSES $0 $0 $0 $0
15. INCOME BEFORE NON-OPERATING INCOME &
EXPENSE
$0
$0
$0
$0
OTHER INCOME & EXPENSES
16. NON-OPERATING INCOME (ATTACH LIST)
17. NON-OPERATING EXPENSE (ATTACH LIST)
18. INTEREST EXPENSE
19. DEPRECIATION / DEPLETION
20. AMORTIZATION
21. OTHER (ATTACH LIST)
22. NET OTHER INCOME & EXPENSES $0 $0 $0 $0
REORGANIZATION EXPENSES
23. PROFESSIONAL FEES
24. U.S. TRUSTEE FEES
25. OTHER (ATTACH LIST)
26. TOTAL REORGANIZATION EXPENSES $0 $0 $0 $0
27. INCOME TAX
28. NET PROFIT (LOSS) $0 $0 $0 $0
9
Erickson Incorporated
Case Number: 16-34393
Income Statement
Monthly Operating Report
Accrual Basis-2 (pg 1 of 2)
12/31/2016
EAC EHI
Schedule Amount 11/30/2016 12/31/2016 Schedule Amount 11/30/2016 12/31/2016
Revenues
1. Gross Revenues 10,339,499 5,540,925 9,201,193 7,860,235 6,109,897 8,773,603
2. Less: Returns & Discounts (73,924) (23,427) (35,095) (155,158) (906,110) (494,141)
3. Net Revenue 10,265,575 5,517,498 9,166,098 7,705,077 5,203,787 8,279,462
4. Material 1 - - - - - -
5. Direct Labor 1 - - - - - -
6. Direct Overhead 1 - - - - - -
7. Total Cost of Goods Sold 1 - - - - - -
8. Gross Profit 10,265,575 5,517,498 9,166,098 7,705,077 5,203,787 8,279,462
Operating Expenses
9. Officer / Insider Compensation - - - - - -
10. Selling & Marketing - - - - - -
11. General & Administrative 1,268,366 541,019 1,238,166 18 - (586)
12. Rent & Lease 233,906 180,238 246,955 684,731 381,657 520,442
13. Other (Attach List) 11,624,397 7,439,363 18,682,016 7,712,379 2,558,455 3,969,326
14. Total Operating Expenses 13,126,668 8,160,620 20,167,137 8,397,128 2,940,112 4,489,181
15. Income Before Non-Operating Income & Expense
(2,861,093)
(2,643,122)
(11,001,039)
(692,051)
2,263,675
3,790,280
Other Income & Expenses
16. Non-Operating Income (Attach List) - - - - - -
17. Non-Operating Expense (Attach List) 294,434 334,587 235,576 (1,240) 488 375
18. Interest Expense 3,407,901 2,559,182 3,432,505 38,199 27,774 37,544
19. Depreciation / Depletion Included within Other Operating
Included within Other Operating 20. Amortization
21. Other (Attach List) 1,487,855 772,490 5,031,849 4,748 - -
22. Net Other Income & Expenses 5,190,189 3,666,259 8,699,931 41,708 28,262 37,919
Reorganization Expenses
23. Professional Fees 2 624,394 1,395,000 1,910,749 - - -
24. U.S. Trustee Fees - 25,000 25,000 - - -
25. Other (Attach List) 678,726 1,250,000 1,535,499 - - -
26. Total Reorganization Expenses 1,303,120 2,670,000 3,471,248 - - -
27. Income Tax - - 642,445 - - -
28. Net Profit (Loss) (9,354,402) (8,979,380) (23,814,663) (733,759) 2,235,413 3,752,362
1 Note the company does not classify any activity as Cost of Goods sold as product sales are considered ancillary to the business. Expenses have been included
within the Operating section.
2 The Debtors have refined their methodology for professional fee accruals, resulting in updates to certain previously-reported items.
10
Erickson Incorporated
Case Number: 16-34393
Income Statement
Monthly Operating Report
Accrual Basis-2 (pg 2 of 2)
12/31/2016
13. Other
EAC EHI
Schedule Amount 11/30/2016 12/31/2016 Schedule Amount 11/30/2016 12/31/2016
Other Operating Expenses
1. Salaries Wages and Benefits (Operations) 5,241,749 3,852,553 5,410,169 (110,518) (57,618) (164,094)
2. Mobilization / Freight Costs 401,687 737,530 182,866 79,482 62,657 9,480
3. Aircraft Fuel 159,750 52,601 230,623 61,804 30,030 48,748
4. Infrastructure Costs 1,982,749 796,094 1,552,039 2,000,969 1,379,646 1,673,591
5. Maintenance 312,298 423,559 202,013 703,442 367,217 352,284
6. Depreciation 933,482 631,702 846,059 638,285 470,223 841,022
7. Amortization 861,007 472,555 319,335 619,932 310,085 501,232
8. Insurance 379,898 178,127 353,908 - (119,872) -
9. E&O/Scrap 35,287 5,220 36,268 54,770 (111) 693,182
10. Cost of Aircraft Sold - 7,229 (197,957) 460 24 -
11. R&D 40,493 (8,033) (16,681) - - -
12. Impairment of Goodwill/Other Assets 1 - - 7,932,588 562,053 - -
13. Cease Use Cost on Idle Aircraft - - - 3,000,087 9,728 12,549
14. Other Operating - Aerial 294,431 234,387 1,222,947 166,451 (1,744) (18,141)
15. Other Operating - MRO (336,125) (510,582) 136,526 (157,613) (15,608) 8,894
16. Other Operating Corporate 2,620,811 3,236,423 3,942,562 92,776 123,797 10,580
17. Reorganization Fees - Reclassed from Operating (1,303,120) (2,670,000) (3,471,248) - - -
Total Other Operating Expenses 11,624,397 7,439,363 18,682,016 7,712,379 2,558,455 3,969,326
16. Other Non Operating Income
EAC EHI
Schedule Amount 11/30/2016 12/31/2016 Schedule Amount 11/30/2016 12/31/2016
Other Non Operating Income
1. Interest Income - - - - - -
Total Other Income - - - - - -
17. Other Non Operating Expense
EAC EHI
Schedule Amount 11/30/2016 12/31/2016 Schedule Amount 11/30/2016 12/31/2016
Other Non Operating Expense
1. Realized Foreign Exchange (Gain)/Loss (1,538) 956 19,612 (1,240) 488 375
2. Unrealized MTM on Fx 19,980 118,859 (76,815) - - -
3. Amortization of Debt Issuance 275,992 214,773 292,780 - - -
Total Other Non Operating Expense 294,434 334,587 235,576 (1,240) 488 375
21. Other Income and Expenses
EAC EHI
Schedule Amount 11/30/2016 12/31/2016 Schedule Amount 11/30/2016 12/31/2016
Other Income and Expenses
1. Other Income (29,870) (19,350) 49,956 - - -
2. Other Expense 1,517,725 791,839 1,340,888 4,748 - -
3. Other 2 - - 3,641,005 - - -
Total Other Expense 1,487,855 772,490 5,031,849 4,748 - -
25. Other Reorganization Fees
EAC EHI
Schedule Amount 11/30/2016 12/31/2016 Schedule Amount 11/30/2016 12/31/2016
Other Reorganization Fees
1. Legal Expenses 3 678,726 1,250,000 1,535,499 - - -
2. Audit/Accounting - - - - - -
3. Other - - - - - -
Total Other Reorganization Fees 678,726 1,250,000 1,535,499 - - -
1 Given the rapid downturn in the oil & gas market soon after the acquisition management has made the decision to divest of the Air Amazonia subsidiary. Additional amounts pertain to
the write down of inventory.
2 Given the rapid downturn in the oil & gas market soon after the acquisition management has made the decision to divest of the Air Amazonia subsidiary.
3 The Debtors have refined their methodology for professional fee accruals, resulting in updates to certain previously-reported items.
11
CASE NAME: Erickson Incorporated
CASE NUMBER: 16-34393
Monthly Operating Report
ACCRUAL BASIS-3
See Attached Rider
CASH RECEIPTS AND DISBURSEMENTS MONTH MONTH MONTH QUARTER
1. CASH - BEGINNING OF MONTH $0 $0 $0
RECEIPTS FROM OPERATIONS
2. CASH SALES $0
COLLECTION OF ACCOUNTS RECEIVABLE
3. PREPETITION $0
4. POSTPETITION $0
5. TOTAL OPERATING RECEIPTS $0 $0 $0 $0
NON-OPERATING RECEIPTS
6. LOANS & ADVANCES (ATTACH LIST) $0
7. SALE OF ASSETS $0
8. OTHER (ATTACH LIST) $0
9. TOTAL NON-OPERATING RECEIPTS $0 $0 $0 $0
10. TOTAL RECEIPTS $0 $0 $0 $0
11. TOTAL CASH AVAILABLE $0 $0 $0
OPERATING DISBURSEMENTS
12. NET PAYROLL $0
13. PAYROLL TAXES PAID $0
14. SALES, USE & OTHER TAXES PAID $0
15. SECURED / RENTAL / LEASES $0
16. UTILITIES $0
17. INSURANCE $0
18. INVENTORY PURCHASES $0
19. VEHICLE EXPENSES $0
20. TRAVEL $0
21. ENTERTAINMENT $0
22. REPAIRS & MAINTENANCE $0
23. SUPPLIES $0
24. ADVERTISING $0
25. OTHER (ATTACH LIST) $0
26. TOTAL OPERATING DISBURSEMENTS $0 $0 $0 $0
REORGANIZATION EXPENSES
27. PROFESSIONAL FEES $0
28. U.S. TRUSTEE FEES $0
29. OTHER (ATTACH LIST) $0
30. TOTAL REORGANIZATION EXPENSES $0 $0 $0 $0
31. TOTAL DISBURSEMENTS $0 $0 $0 $0
32. NET CASH FLOW $0 $0 $0 $0
33. CASH - END OF MONTH $0 $0 $0
12
Erickson Incorporated
Case Number: 16-34393
Cash Flow Statement
Monthly Operating Report
Accrual Basis-3
12/31/2016
12/1/16 - 12/31/16
EAC EHI
Total Cash Receipts 1 15,116,652 7,617,481
Disbursements
Employee Benefits and Other 1,124,192 -
Debt Service 2 369,975 -
Freight and Fuel 287,302 141,709
Insurance 49,704 -
Other Operating Expenses 1,862,042 240,530
Payroll 5,057,725 -
Physical Goods 1,699,656 709,044
Professional Fees 920,264 -
Total Disbursements 11,370,859 1,091,283
Net Cash Flow 3,745,793 6,526,198
CASH RECONCILIATION:
Beginning Cash 3,322,354 182,360
Net Financing Proceeds from DIP Facilities 3 10,000,000 -
Total Cash Disbursements 4 (10,799,593) (1,091,283)
Other 5 1,043 1,215,613
Closing Balance 2,523,804 306,690
1 Cash collections are swept daily to the pre-petition DIP ABL Loan and do not typically impact ending cash balances
2 Debt Service charges are applied directly to the post-petition DIP Revolving Facility and do not reflect cash transactions
3 Reflects net operating cash proceeds from the DIP Term Facility and DIP Revolving Facility
4 Excludes non-cash disbursements charged directly to the DIP Revolving Facility
5 Includes cash collections on December 31st held in the depository account not yet swept to the revolver, differences between
bank and book cash, and intercompany book transfers between the Debtors.
13
CASE NAME: Erickson Incorporated
CASE NUMBER: 16-34393
AGING OF POSTPETITION TAXES AND PAYABLES
TAXES PAYABLE
0-30
DAYS
31-60
DAYS
61-90
DAYS
91+
DAYS
TOTAL
1. FEDERAL $0
2. STATE $0
3. LOCAL $0
4. OTHER (ATTACH LIST) $0
5. TOTAL TAXES PAYABLE $0 $0 $0 $0 $0
STATUS OF POSTPETITION TAXES
FEDERAL
BEGINNING
TAX
LIABILITY
AMOUNT
WITHHELD AND/
0R ACCRUED
AMOUNT
PAID
ENDING
TAX
LIABILITY
1. WITHHOLDING $0
2. FICA-EMPLOYEE $0
3. FICA-EMPLOYER $0
4. UNEMPLOYMENT $0
5. INCOME $0
6. OTHER (ATTACH LIST) $0
7. TOTAL FEDERAL TAXES $0 $0 $0 $0
STATE AND LOCAL
8. WITHHOLDING $0
9. SALES $0
10. EXCISE $0
11. UNEMPLOYMENT $0
12. REAL PROPERTY $0
13. PERSONAL PROPERTY $0
14. OTHER (ATTACH LIST) $0
15. TOTAL STATE & LOCAL $0 $0 $0 $0
16. TOTAL TAXES $0 $0 $0 $0
Monthly Operating Report
ACCRUAL BASIS-4
See Attached Rider
ACCOUNTS RECEIVABLE AGING
SCHEDULE
AMOUNT
MONTH
MONTH
MONTH
1. 0-30
2. 31-60
3. 61-90
4. 91+
5. TOTAL ACCOUNTS RECEIVABLE $0 $0 $0 $0
6. AMOUNT CONSIDERED UNCOLLECTIBLE
7. ACCOUNTS RECEIVABLE (NET) $0 $0 $0 $0
MONTH: December 2016
6. ACCOUNTS PAYABLE $0
MONTH: December 2016
14
BEGINNING
TAX
LIABILITY
AMOUNT
WITHHELD AND/
OR ACCRUED
AMOUNT
PAID
ENDING
TAX
LIABILITY
1. WITHHOLDING - - - -
2. FICA-EMPLOYEE - - - -
3. FICA-EMPLOYER - - - -
4. UNEMPLOYMENT - - - -
5. INCOME - 32,821 (22,938) 55,759
6. OTHER (SEE LIST BELOW) 111,163 2,112,808 1,374,647 849,324
7. TOTAL FEDERAL TAXES 111,163 2,145,629 1,351,709 905,083
STATE AND LOCAL
8. WITHHOLDING1 - - - -
9. SALES 2 - - - -
10. EXCISE 1,258 1,177 - 2,435
11. UNEMPLOYMENT - - - -
12. REAL PROPERTY 3,552 3,490 - 7,041
13. PERSONAL PROPERTY 1,043 1,423 - 2,466
14. OTHER (ATTACH LIST) - - - -
15. TOTAL STATE & LOCAL 5,853 6,090 - 11,942
16. TOTAL TAXES 117,016 2,151,718 1,351,709 917,025
BEGINNING
TAX
LIABILITY
AMOUNT
WITHHELD AND/
OR ACCRUED
AMOUNT
PAID
ENDING
TAX
LIABILITY
Employment Tax 111,163 2,072,808 1,374,647 809,324
India - 40,000 - 40,000
6. OTHER 111,163 2,112,808 1,374,647 849,324
Erickson Incorporated Monthly Operating Report
Case Number: 16-34393 Accrual Basis-4
12/31/2016
Accounts Receivable
EAC EHI
Accounts Receivable Aging Schedule Amount 11/30/2016 12/31/2016 Schedule Amount 11/30/2016 12/31/2016
1. 0-30 15,320,748 18,264,969 8,329,867 7,944,369 15,960,655 15,303,393
2. 31-60 1,288,748 2,190,489 4,160,852 338,122 253,419 562,209
3. 61-90 1,309,877 541,166 614,798 17,802 247,472 41,552
4. 91+ 455,953 1,174,390 731,288 (14,487) 3,085 136,284
5. Total Accounts Receivable 18,375,326 22,171,014 13,836,805 8,285,806 16,464,631 16,043,438
6. Amount Considered uncollectible (901,659) (821,692) (821,592) (490,922) (7,922) -
7. Accounts Receivable Net 17,473,668 21,349,323 13,015,214 7,794,884 16,456,708 16,043,438
Other Accounts Receivable 5,892,304 1,898,220 3,779,621 9,517,643 749,483 999,998
Total AR 23,365,972 23,247,543 16,794,834 17,312,527 17,206,192 17,043,436
Aging of Postpetition Taxes and Payables
TAXES PAYABLE 0-30 DAYS 31-60 DAYS 61-90 DAYS 91+ DAYS TOTAL
1. FEDERAL 905,083 - - - 905,083
2. STATE 11,942 - - - 11,942
3. LOCAL - - - - -
4. OTHER (ATTACHED LIST) - - - - -
5. TOTAL TAXES PAYABLE 917,025 - - - 917,025
6. ACCOUNTS PAYABLE 5,496,696 159,334 - - 5,656,031
Other Accounts Payable 1 6,018,088
Total Accounts Payable 11,674,119
1 Other A/P includes items such as: Inventory Received Not Invoiced, Credit Card Clearing, and manual A/P adjustments
Status of Postpetition Taxes
FEDERAL
6. OTHER
FEDERAL
1 State taxes are included within the Other line in the Federal section as the tax accrual process does not identify Federal vs Local
2 No postpetition Sales taxes accrued
15
CASE NAME: Erickson Incorporated
CASE NUMBER: 16-34393
BANK RECONCILIATIONS
A. BANK:
TOTAL B. ACCOUNT NUMBER:
C. PURPOSE (TYPE):
1. BALANCE PER BANK STATEMENT $0
2. ADD: TOTAL DEPOSITS NOT CREDITED $0
3. SUBTRACT: OUTSTANDING CHECKS $0
4. OTHER RECONCILING ITEMS $0
5. MONTH END BALANCE PER BOOKS $0 $0 $0 $0
6. NUMBER OF LAST CHECK WRITTEN
Monthly Operating Report
ACCRUAL BASIS-5
See Attached Rider
MONTH: December 2016
Account #1 Account #2 Account #3
INVESTMENT ACCOUNTS
BANK, ACCOUNT NAME & NUMBER
DATE OF
PURCHASE
TYPE OF
INSTRUMENT
PURCHASE
PRICE
CURRENT
VALUE
7.
8.
9.
10.
11. TOTAL INVESTMENTS $0 $0
CASH
12. CURRENCY ON HAND $0
13. TOTAL CASH - END OF MONTH $0
Erickson Incorporated
Case Number: 16-34393
Bank Reconciliations
Month End - October 2016
A. BANK: Wells Wells Petty Cash Wells Wells Petty Cash
TOTAL B. ACCOUNT NUMBER (Last 4) 0235 2897 0245 0252
C. PURPOSE (TYPE): Operating Payroll Operating Payroll
1. BALANCE PER BANK STATEMNT 1,550,599 - 1,550,599 243,525 243,525 1,794,124
2. ADD: TOTAL DEPOSITS NOT CREDITED - - - -
3. SUBTRACT: OUTSTANDING CHECKS (438,543) (52,873) (491,417) (270,142) 1,446 (268,696) (760,112)
4. OTHER RECONCILING ITEMS 13,570 52,873 13,469 79,913 317,091 (1,446) 4,349 319,994 399,907
5. MONTH END BALANCE PER BOOKS 1,125,626 - 13,469 1,139,095 290,475 - 4,349 294,824 1,433,919
6. NUMBER OF LAST CHEK WRITTEN 86034 51849 217131 010922
Month End - November 2016
A. BANK: Wells Wells Petty Cash Wells Wells Petty Cash
TOTAL B. ACCOUNT NUMBER (Last 4) 0235 2897 0245 0252
C. PURPOSE (TYPE): Operating Payroll Operating Payroll
1. BALANCE PER BANK STATEMNT 3,187,894 - 3,187,894 198,888 - 198,888 3,386,782
2. ADD: TOTAL DEPOSITS NOT CREDITED - - - -
3. SUBTRACT: OUTSTANDING CHECKS 97,252 (38,233) 59,019 (25,643) (1,446) (27,089) 31,931
4. OTHER RECONCILING ITEMS 23,739 38,233 13,469 75,441 4,766 1,446 4,349 10,561 86,002
5. MONTH END BALANCE PER BOOKS 3,308,885 - 13,469 3,322,354 178,011 - 4,349 182,360 3,504,714
6. NUMBER OF LAST CHEK WRITTEN 86556 51873 217520 010922
Month End - December 2016
A. BANK: Wells Wells Petty Cash Wells Wells Petty Cash
TOTAL B. ACCOUNT NUMBER (Last 4)
C. PURPOSE (TYPE): Operating Payroll Operating Payroll
1. BALANCE PER BANK STATEMNT 2,847,058 - 2,847,058 530,499 - 530,499 3,377,557
2. ADD: TOTAL DEPOSITS NOT CREDITED - - - -
3. SUBTRACT: OUTSTANDING CHECKS (432,907) (27,045) (459,952) (230,604) (1,446) (232,050) (692,002)
4. OTHER RECONCILING ITEMS 1,039 27,045 8,614 36,698 4,927 1,446 1,867 8,241 44,939
5. MONTH END BALANCE PER BOOKS 2,415,190 - 8,614 2,423,804 304,823 - 1,867 306,690 2,730,494
6. NUMBER OF LAST CHEK WRITTEN 86770 51918 217614 010922
Monthly Operating Report
Accrual Basis-5
12/31/2016
EAC EAC EAC EAC Total EHI EHI EHI EHI Total
EAC EAC EAC EAC Total EHI EHI EHI EHI Total
EAC EAC EAC EAC Total EHI EHI EHI EHI Total
16
17
Monthly Operating Report
ACCRUAL BASIS-6
CASE NAME: Erickson Incorporated
CASE NUMBER: 16-34393
MONTH: December 2016
PAYMENTS TO INSIDERS AND PROFESSIONALS
INSIDERS 1
NAME
TYPE OF
PAYMENT
AMOUNT
PAID
TOTAL PAID
TO DATE
1. None
2.
3.
4.
5.
6. TOTAL PAYMENTS TO INSIDERS $0 $0
1 Note - ordinary wage, expense and benefit payments to employees deemed 'Insiders' are not reported in Accrual Basis-6.
PROFESSIONALS
NAME 1
DATE OF COURT
ORDER AUTHORIZING
PAYMENT
AMOUNT
APPROVED
AMOUN
T PAID
TOTAL PAID
TO DATE
TOTAL
INCURRED
& UNPAID 2
1. Haynes & Boone LLP 12/16/2016, Docket # 191 $480,747 $480,747 $115,736
2. Houlihan Lokey 12/16/2016, Docket # 191 $135,403 $135,403 $129,285
3. Goldberg Kohn Ltd 12/16/2016, Docket # 191 $103,880 $103,880 $0
4. Sayfarth Shaw LLP 12/16/2016, Docket # 191 $102,823 $102,823 $0
5. Loughlin Management Partners & Co 12/16/2016, Docket # 191 $97,412 $97,412 $0
6. TOTAL PAYMENTS TO PROFESSIONALS $920,265 $920,265 $245,022
1 Excludes professional firms that did not receive payment during the month of December; several professional not listed above have incurred costs but
invoices have not yet been received or processed
2 Reflects only invoices formally noticed to the Debtors for firms with payments received in the corresponding month
POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE
PROTECTION PAYMENTS
NAME OF CREDITOR
SCHEDULED
MONTHLY
PAYMENTS
DUE
AMOUNTS
PAID
DURING
MONTH
TOTAL
UNPAID
POSTPETITION
1. See Attached Rider
2.
3.
4.
5.
6. TOTAL $1,432,144 $22,074,160 $2,610,178
18
Erickson Incorporated
Case Number: 16-34393
Monthly Operating Report
Accrual Basis-6 (pg 1 of 2)
12/31/2016
Postpetition Status of Secured Notes, Leases Payable and Adequate Protection Payments
Name of Creditor
Scheduled Monthly
Payments Due 1
Amounts Paid
During Month 2
Total Unpaid Post
Petition 3, 4
1 EAGLE COPTERS MAINTENANCE LTD 18,000 - 36,000
2 EAGLE COPTERS MAINTENANCE LTD 18,000 - 36,000
3 HELIFLEET 2013-01, LLC N300EV 32,000 - 64,000
4 HELIFLEET 2013-01, LLC N367EV 25,000 - 50,000
5 HELIFLEET 2013-01, LLC N787SR 20,000 - 40,000
6 HELIFLEET 2013-01, LLC N814EH 9,000 - 18,000
7 HELIFLEET 2013-01, LLC N8227J 8,000 - 16,000
8 HELIFLEET 2013-01, LLC N366EV 31,000 - 62,000
9 HELIFLEET 2013-01, LLC N415EV 87,104 - 174,207
10
MILESTONE AVIATION ASSET HOLDING GROUP
NO 1
68,500
-
137,000
11
MILESTONE AVIATION ASSET HOLDING GROUP
NO 1
67,931
-
135,862
12 THE MILESTONE AVIATION GROUP LIMITED 290,245 - 580,490
13 SQN HELO, LLC 48,885 - 97,770
14 SQN HELO, LLC 56,217 - 112,434
15 SQN HELO, LLC 51,811 - 103,621
16 SQN HELO, LLC 51,811 - 103,621
17 SQN HELO, LLC 39,960 - 79,920
18 ITC LEASING N708H 60,417 - 120,834
19 ITC LEASING N745H 15,019 - 30,038
20 ITC LEASING N746H 30,576 - 61,153
21 SENTRY AIRCRAFT LEASING 8 105 EV 27,362 - 54,724
22 SENTRY AIRCRAFT LEASING #171CJ 26,931 - 53,863
23 SENTRY CAPITAL CORP #368EV 70,653 - 141,305
24 SENTRY CAPITAL CORP #393AL 27,477 - 54,954
25 SENTRY AIRCRAFT LEASING #N437CA 32,915 - 65,830
26 SENTRY AIRCRAFT LEASING #N502FS 29,330 - 58,661
27 VARIANT AIRCRAFT FUND 28198 LLC 47,855 - 95,709
28 AMERICAN MULTIPLEX LLC 1,150 1,150 1,150
29 KING ISLAND NATIVE CORPORATION 2,200 2,200 2,200
30 MUNICIPALITY OF ANCHORAGE 1,912 1,912 1,912
31 PARK PLAZA II APARTMENTS 2,240 2,240 -
32 ROGERS PARK 900 900 900
33 BURRILL REAL ESTATE INC 11,324 11,324 -
34 JACKSON COUNTY AIRPORT AUTHORITY 2,181 2,181 2,181
1 Amounts Scheduled December Rent payments.
2 Payments on post petition rent/leases in December.
3 Amounts include scheduled November and December Rent payments for the full month current outstanding, they have not been
prorated to reflect solely postpetition amounts for November.
4 In January, the Bankruptcy Court approved various stipulations providing for Section 1110(b) extensions in relation to several
lessors. These stipulations addressed payments for the period from 11/9/2016 through 1/31/17 and beyond. These stipulations
will in most cases reduce the amounts payable detailed here.
19
Erickson Incorporated
Case Number: 16-34393
Monthly Operating Report
Accrual Basis-6 (pg 2 of 2)
12/31/2016
Postpetition Status of Secured Notes, Leases Payable and Adequate Protection Payments
Name of Creditor
Scheduled Monthly
Payments Due 1
Amounts Paid
During Month 2
Total Unpaid Post
Petition 3, 4
35 JACKSON COUNTY AIRPORT AUTHORITY 434 434 434
36 SRI EIGHT MACADAM LLC 40,651 40,651 -
37 WEST CASCADE PROPERTIES 2,758 2,758 -
38 WESTERN EQUIPMENT FINANCE 1,795 1,795 -
39 ACME SUITES/AYALA PROPERTIES LLC 2,000 2,000 533
40 ROBERT F GREENWELL CO LLP 43,929 76,144 11,715
41 SMITH RANCHES 11,086 11,086 -
42 T&D FAMILY TRUST (TIM & DENISE SMITH) 11,514 11,514 -
43 J&H CP, LLC
44 ENTERPRISE FM TRUST 4,072 2,986 5,158
45 WELLS FARGO REVOLVER 5 21,902,885
Total 1,432,144 22,074,160 2,610,178
1 Amounts Scheduled December Rent payments.
2 Payments on postpetition rent/leases in December.
3 Amounts include scheduled November and December Rent payments for the full month current outstanding, they have not been
prorated to reflect solely postpetition amounts for November.
4 In January, the Bankruptcy Court approved various stipulations providing for Section 1110(b) extensions in relation to several
lessors. These stipulations addressed payments for the period from 11/9/2016 through 1/31/17 and beyond. These stipulations
will in most cases reduce the amounts payable detailed here.
5 The Pre-Petition ABL Loan reflects both post-petition payments from collection of receivables as well as the First Lien Repayment
as described in the final DIP Order [Docket No. 133, entered on 12/2/2016]. As the pre-petition facility continues to collect
proceeds and pay down its principal balance, the DIP Revolving Facility allows the Debtors to advance funds on a post-petition
basis. Please reference the final DIP Order [Docket No. 133] for further information.
20
Monthly Operating Report
ACCRUAL BASIS-7
CASE NAME: Erickson Incorporated
CASE NUMBER: 16-34393
MONTH: December 2016
QUESTIONNAIRE
YES NO
1. HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE
THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?
x
2. HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT
OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?
x
3. ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR
LOANS) DUE FROM RELATED PARTIES?
x
4. HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES
THIS REPORTING PERIOD?
x
5. HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE
DEBTOR FROM ANY PARTY?
x
6. ARE ANY POSTPETITION PAYROLL TAXES PAST DUE? x
7. ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES
PAST DUE?
x
8. ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE? x
9. ARE ANY OTHER POSTPETITION TAXES PAST DUE? x
10. ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS
DELINQUENT?
x
11. HAVE ANY PREPETITION TAXES BEEN PAID DURING THE
REPORTING PERIOD?
x
12. ARE ANY WAGE PAYMENTS PAST DUE? x
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES," PROVIDE A DETAILED
EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.
3. Company continues to transact with wholly and partially owned subsidiaries of Erickson Incorporated in the normal course of operations.
4. Court approved first day motion payments made as well as court approved professional fees.
5. The debtor in possesion financing.
8. 3100 Willow Springs Drive - Lessor J&H LLC paid 7/1/16 through 6/30/17 property taxes on our behalf. Payment to J&H outstanding.
12. Certain prepetition severance amounts have not been paid postpetition.
INSURANCE
YES NO
1. ARE WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER
NECESSARY INSURANCE COVERAGES IN EFFECT?
x
2. ARE ALL PREMIUM PAYMENTS PAID CURRENT? x
3. PLEASE ITEMIZE POLICIES BELOW.
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "NO," OR IF ANY POLICIES HAVE BEEN
CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION
BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.
INSTALLMENT PAYMENTS
TYPE OF
POLICY
CARRIER
PERIOD COVERED
PAYMENT AMOUNT
& FREQUENCY
Auto Willis of Oregon 4/1/16 - 3/30/17 Downpayment - $31,097, 9 Monthly payments - $10,370
Domestic Workers Comp Willis of Oregon 4/1/16 - 3/30/17 Downpayment - $174,507, 3 Quarterly payments - $144,475
Foreign Workers Comp Willis of Oregon 4/1/16 - 3/30/17 Downpayment - $129,907, 3 Quarterly payments - $129,906
Defense Bases Act Work Comp Willis - FlatIron Financing 4/1/16 - 3/30/17 Downpayment - $209,467 to Willis of Oregon - 10 monthly payments of $49,704
Property and Package Insurance Willis - FlatIron Financing 4/1/16 - 3/30/17 Included above
Executive Risk Insurance Willis - FlatIron Financing 4/1/16 - 3/30/17 Included above
Aviation Insurance Willis of New York 7/1/16 - 6/30/17 Downpayment - $907,454, 3 Quarterly payments - $864,009
Marine Policy Willis of New York 7/1/16 - 6/30/17 Quarterly - $40,750
Excess Policy Willis of New York 7/1/16 - 6/30/17 Semi - Annual - $53,186
Political Risk Insurance Willis 8/1/16 - 7/31/16 Quarterly - Approx. $9,000
Financing Fee Willis of New York 7/1/16 - 6/30/17 Quarterly - $93,149
Aircraft Hull and Liability Willis of Canada 7/1/16 - 6/30/17 Quarterly $62,157