PHI Bondholders Aim to End Company’s Lockhold on Bankruptcy Plan

Creditors to PHI Inc. filed a motion May 13 to terminate the company’s exclusive right to propose a bankruptcy plan, arguing the current framework is unfair and creditors should be able to propose a competing plan.

• Attorneys for the official unsecured creditors committee (UCC) argue that PHI CEO Al Gonsoulin shouldn’t be allowed to gain a significant share of the equity in the reorganized company “free from competition and without the benefit of a market valuation’’
• “Fundamental notions of fairness and preservation of the integrity of the bankruptcy process require that creditors be given the opportunity to present an alternative ...