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: January 2017
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 2/28/2017
PRINTED NAME OF RESPONSIBLE PARTY
PREPARER:
DATE
/s/ Craig Eastwood Controller
ORIGINAL SIGNATURE OF PREPARER
TITLE
Craig Eastwood 2/28/2017
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.
• 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 change 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)
1/31/2017
EAC EHI
11/30/2016 12/31/2016
1
1/31/2017 11/30/2016 12/31/2016 1/31/2017
Assets
1. Unrestricted Cash 3,322,354 2,423,804 3,888,811 182,360 306,690 226,002
2. Restricted Cash 2 - 25,209,636 25,209,636 - - -
3. Total Cash 3,322,354 27,633,440 29,098,447 182,360 306,690 226,002
4. Accounts Receivable 23,247,543 16,794,834 19,105,671 17,206,192 17,043,436 17,301,478
5. Inventory3 - - - - - -
6. Notes Receivable 4 310,470,056 306,598,914 306,598,914 - - -
7. Prepaid Expenses 5,201,848 5,898,816 4,601,674 1,480,562 1,493,950 1,319,700
8. Other (Attach List) 1,522,854 1,991,891
2,002,462 252,444 252,444 252,444
9. Total Current Assets 343,764,655 358,917,896 361,407,168 19,121,558 19,096,520 19,099,624
10. Property Plant and Equipment 37,923,364 42,471,275 42,459,512 6,912,529 6,796,126 7,290,341
11. Less: Accumulated Depreciation/Depletion (23,000,461) (23,270,611) (23,526,099) (2,766,788) (2,857,079) (2,944,137)
12. Net Property, Plant and Equipment 14,922,903 19,200,664 18,933,413 4,145,741 3,939,048 4,346,204
13. Due From Insiders - - - - - -
14. Other Assets - Net of Amortization 98,676,876 98,804,149 93,983,733 57,850,063 54,493,345 48,552,321
15. Other (Attach Lists) 128,065,314 119,646,893 124,744,437 226,615,668 228,885,162 230,273,676
16. Total Assets 585,429,748 596,569,601 599,068,751 307,733,029 306,414,075 302,271,826
Postpetition Liabilities
17. Accounts Payable 795,683 5,136,295 5,481,535 3,717,764 6,056,515 5,938,324
18.
Taxes Payable 5 - 226,539 226,539 - - -
19. Notes Payable - - - - - -
20. Professional Fees 2,485,900 5,050,898 6,538,145 - - -
21. Secured Debt 6 - - - - - -
22. Other (Attach List) 37,437,808 95,940,341 122,962,306 11,848,159 4,507,917 2,131,755
23. Total Postpetition Liabilities 40,719,392 106,354,073 135,208,525 15,565,922 10,564,432 8,070,079
Prepetition Liabilities 7
24. Secured Debt 8, 9 450,980,996 429,370,891 414,709,739 - - -
25. Priority Debt - - - -
26. Unsecured Debt 10 18,630,758 18,609,700 18,638,165 3,720,731 3,688,359 138
27. Other (Attach List) 39,189,532 34,902,529 33,375,105 21,219,478 17,659,382 15,880,059
28. Total Prepetition Liabilities 508,801,287 482,883,120 466,723,008 24,940,209 21,347,741 15,880,197
29. Total Liabilities 549,520,678 589,237,194 601,931,533 40,506,131 31,912,173 23,950,276
Equity
30.
Prepetition Owners' Equity 45,114,266 45,114,266 45,114,266 264,991,485 264,991,485 264,991,485
31. Postpetition Cumulative Profit or (Loss) (8,979,380) (38,669,472) (48,912,002) 2,235,413 9,510,417 13,330,065
32. Direct Charges to Equity (Attach Explanation) (225,816) 887,613 934,954 - - -
33. Total Equity 35,909,070 7,332,407 (2,862,782) 267,226,898 274,501,902 278,321,550
34. Total Liabilities & Owners' Equity 585,429,748 596,569,601 599,068,751 307,733,029 306,414,075 302,271,826
1 Certain balances for December 2016 as originally reported in the December MOR were adjusted to reflect, among others, certain year-end adjustments.
2 Increase in Restricted Cash pertains to the balance of cash receipts deposited in the DIP Term Facility Priority Account from the DIP Term Facility. The DIP Term Facility is fully drawn.
3 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
4 The Note Receivable balance relates to Investments in Subsidiary companies.
5 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.
6 The unpaid Postpetition Lease balance from Accrual Basis-6 is captured within the Accounts Payable or Other Accrued Liabilities balance.
7 Creditors may have claims against multiple legal entities.
8 As of 11/30/2016, the Secured Debt consists of $349M in Bonds Payable net of debt issuance costs, $101.7M in Existing First Lien Credit Facility 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 Existing First Lien Credit Facility
debt net
of debt issuance costs and $115.8k in financed furniture. As of 1/31/17, the Secured Debt consists of $349M in Bonds Payable net of debt issuance costs, $65.2M in Existing First
Lien Credit Facility debt net of debt issuance costs and $90.3k in financed furniture.
9 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.
10 Decrease in Unsecured Debt is related to the reversal of previous capital lease obligations per various stipulation agreements.
6
Erickson Incorporated
Case Number: 16-34393
Comparative Balance Sheet
Monthly Operating Report
Accrual Basis-1 (pg 2 of 3)
1/31/2017
8. Other Current Assets
EAC EHI
11/30/2016 12/31/2016 1/31/2017 11/30/2016 12/31/2016 1/31/2017
Other Current Assets
1. Income Tax Receivable 1,271,217 2,065,555 2,076,126 252,444 252,444 252,444
2. Costs in Excess of Billings - - - - - -
3. Deferred Tax Assets (Current) 251,637 (73,664) (73,664) - - -
Total Other Current Assets 1,522,854 1,991,891 2,002,462 252,444 252,444 252,444
15. Other LT Assets
EAC EHI
11/30/2016 12/31/2016
1
1/31/2017 11/30/2016 12/31/2016 1/31/2017
Other LT Assets
1. Assets Held for Sale 1,500,000 1,500,000
1,500,000 4,510,411 7,082,618 7,082,618
2. Goodwill and Other Intangible Assets 2,205,093 2,205,093 2,205,093 172,148,585 171,969,881 171,791,177
3. Allowance for Doubtful Accounts - LT (4,815,811) - - - - -
4. Deposits - LT 1,576,014 2,671,980 3,199,917 8,342,274 8,884,271 9,500,504
5. Other noncurrent assets 39,503 38,563 38,563 8,422 3,019 1,783
6. Other Assets Forward Contracts - - - - - -
7. Noncurrent Accounts Receivable 4,704,741 - - - - -
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 228,792 219,583 219,583 0 0 0
16. Aircraft Support Parts 122,626,981 113,011,674 117,581,281 41,595,975 40,935,373 41,887,593
Total Other LT Assets 128,065,314 119,646,893 124,744,437 226,615,668 228,885,162 230,273,676
22. Other Postpetition Liabilities
EAC EHI
11/30/2016 12/31/2016
1
1/31/2017 11/30/2016 12/31/2016 1/31/2017
Other Postpetition Liabilities
1. Accrued Payroll and Related Taxes 5,583,922 6,003,459 6,485,401 12,184 12,184 12,184
2. Customer Advance Payments - - - - - -
3. Accrued Interest 2 2,232,239 5,195,678 7,322,850 37,873 37,544 -
4. Forward Contracts 56,093 - - - - -
5. Return to Service Liability - - - - - -
6. Deferred
Revenue 278,240 290,640 592,740 595,400 186 -
7. Mobilization Expense Accrual (48,081) 1,569,064 1,752,043 - 75,000 -
8. Venue Expense Accrual 260,004 551,679 456,601 - - -
9. Other Accrued Liabilities 1,134,633 338,692 317,032 63,475 60,352 88,561
10. Intercompany (10,209,752) 64,012 1,712,382 11,139,167 4,322,651 2,031,010
11. Deferred Tax Liability - 140,384 140,384 - - -
12. Other LT Liabilities 260,147 276,525 214,494 60 - -
13. Uncertain Tax Position - (4,394) (4,394) - - -
14. Debtor in Possession Financing 3 37,890,364 81,514,603 103,972,773 - - -
Total Other Postpetition Liabilities 37,437,808 95,940,341 122,962,306 11,848,159 4,507,917 2,131,755
1 Certain balances for December 2016 as originally reported in the December MOR were adjusted to reflect, among others, certain year-end adjustments.
2 Debtors are continuing to accrue interest on
account of Second Lien debt, but despite the accrual claimants may not be entitled to postpetition interest.
3 Increase to Debtor in Possession Financing pertains to outstanding balances under the DIP Revolving Facility ($35,549,393 as of January 31, 2017) and the DIP Term
Loan Facility ($68,423,380 as of January 31, 2017).
7
Erickson Incorporated
Case Number: 16-34393
Comparative Balance Sheet
Monthly Operating Report
Accrual Basis-1 (pg 3 of 3)
1/31/2017
27. Other Prepetition Liabilities
EAC EHI
11/30/2016 12/31/2016 1/31/2017 11/30/2016 12/31/2016 1/31/2017
Other Prepetition Liabilities
1. Accounts Payable 1 10,395,759 8,016,046 6,717,844 15,478,157 15,498,128 14,033,132
2. Taxes Payable 63,836 63,836 63,836 - - -
3. Notes Payable - - - - - -
4. Professional Fees 57,915 57,930 57,930 - - -
5. Accrued Payroll and Related Taxes
6. Customer Advance Payments - - - - - -
7. Accrued Interest 15,840,681 15,702,002 15,702,002 - - -
8. Forward Contracts
- - - - -
9. Return to Service Liability - - - 900,000 900,000 900,000
10. Deferred Revenue 627,266 627,266 627,266 - - -
11. Mobilization Expense Accrual 1,519,001 - - 75,000 - -
12. Venue Expense Accrual 20,128 - - - - -
13. Other Accrued Liabilities 10,995,105 10,936,044 10,730,620 4,771,319 3,082,095 2,980,637
14. Intercompany (12,790,110) (12,790,110) (12,790,110) (6,967,598) (6,967,598) (6,967,598)
15. Deferred Tax Liability 2,024,465 2,024,465 2,024,465 - - -
16. Other LT Liabilities 9,263,497 9,093,063 9,069,264 6,962,600 5,146,757 4,933,888
17. Uncertain Tax Position 1,171,988 1,171,988 1,171,988 - - -
Total Other Prepetition Liabilities 39,189,532 34,902,529 33,375,105 21,219,478 17,659,382 15,880,059
32. Direct Charges to Equity
EAC EHI
11/30/2016 12/31/2016 1/31/2017 11/30/2016 12/31/2016 1/31/2017
Direct
Charges to Equity
Cumulative Translation Adjustment (233,550) 102,052 184,676 - - -
Additional Paid In Capital 7,734 10,898 (137,336) - - -
Other Comprehensive Income Adjustment 2 - 1,000,479 - - - -
Total Direct Charges to Equity (225,816) 1,113,429 47,341 - - -
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)
1/31/2017
EAC EHI
11/30/2016 12/31/2016
1
1/31/2017 11/30/2016 12/31/2016 1/31/2017
Revenues
1. Gross Revenues 5,540,925 9,201,193 7,603,742 6,109,897 8,773,603 10,156,029
2. Less: Returns & Discounts (23,427) (35,095) (461,681) (906,110) (494,141) 137,452
3. Net Revenue 5,517,498 9,166,098 7,142,060 5,203,787 8,279,462 10,293,481
4. Material 2 - - - - - -
5. Direct Labor 2 - - - - - -
6. Direct Overhead 2 - - - - - -
7. Total Cost of Goods Sold 2 - - - - - -
8. Gross Profit 5,517,498 9,166,098 7,142,060 5,203,787 8,279,462 10,293,481
Operating Expenses
9. Officer /
Insider Compensation - - - - - -
10. Selling & Marketing - - - - - -
11. General & Administrative 541,019 1,238,166 1,308,940 - (586) -
12. Rent & Lease 180,238 246,955 367,198 381,657 520,442 221,179
13. Other (Attach List) 7,439,363 18,682,016 11,893,541 2,558,455 446,683 6,289,887
14. Total Operating Expenses 8,160,620 20,167,137 13,569,678 2,940,112 966,539 6,511,066
15. Income Before Non-Operating Income & Expense
(2,643,122)
(11,001,039)
(6,427,618)
2,263,675
7,312,923
3,782,415
Other Income & Expenses
16. Non-Operating Income (Attach List) - - - - - -
17. Non-Operating Expense (Attach List) 334,587 6,902,243 43,260 488 375 311
18. Interest Expense 2,559,182 4,534,125 3,968,826 27,774 37,544 (37,544)
19.
Depreciation / Depletion Included within Other Operating
Included within Other Operating 20. Amortization
21. Other (Attach List) 772,490 3,138,992 (2,756,954) - - -
22. Net Other Income & Expenses 3,666,259 14,575,360 1,255,132 28,262 37,919 (37,232)
Reorganization Expenses
23. Professional Fees 1,395,000 1,910,749 417,919 - - -
24. U.S. Trustee Fees 25,000 25,000 25,000
25. Other (Attach List) 1,250,000 1,535,499 2,116,861 - - -
26. Total Reorganization Expenses 2,670,000 3,471,248 2,559,780 - - -
27. Income Tax - 642,445 - - - -
28. Net Profit (Loss) (8,979,380) (29,690,092) (10,242,529) 2,235,413 7,275,004 3,819,648
1 Certain balances for December 2016 as originally reported in the December MOR were adjusted to reflect, among others, certain year-end adjustments.
2 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.
10
Erickson Incorporated
Case Number: 16-34393
Income Statement
Monthly Operating Report
Accrual Basis-2 (pg 2 of 2)
1/31/2017
13. Other
EAC EHI
11/30/2016 12/31/2016 1/31/2017 11/30/2016 12/31/2016 1/31/2017
Other Operating Expenses
1. Salaries Wages and Benefits (Operations) 3,852,553 5,410,169 6,328,317 (57,618) (164,094) (14,130)
2. Mobilization / Freight Costs 737,530 182,866 1,040,080 62,657 9,480 926,923
3. Aircraft Fuel 52,601 230,623 211,402 30,030 48,748 35,412
4. Infrastructure Costs 796,094 1,552,039 1,270,743 1,379,646 1,673,591 418,221
5. Maintenance 423,559 202,013 189,756 367,217 352,284 834,538
6. Depreciation 631,702 846,059 831,396 470,223 841,022 776,239
7. Amortization 472,555 319,335 514,975 310,085 501,232
943,309
8. Insurance 178,127 353,908 617,923 (119,872) - (106,725)
9. E&O/Scrap 5,220 36,268 - (111) 693,182 (55,114)
10. Cost of Aircraft Sold 7,229 (197,957) (359,507) 24 - -
11. R&D (8,033) (16,681) 50,212 - - -
12. Impairment of Goodwill/Other Assets 1 - 7,932,588 - - - -
13. Cease Use Cost on Idle Aircraft - - - 9,728 (3,510,093) 9,569
14. Other Operating - Aerial 234,387 1,222,947 156,906 (1,744) (18,141) 51,488
15. Other Operating - MRO (510,582) 136,526 510,417 (15,608) 8,894 (24,111)
16. Other Operating Corporate 3,236,423 3,942,562 3,090,701 123,797 10,580 2,494,270
17. Reorganization Fees - Reclassed from Operating (2,670,000) (3,471,248) (2,559,780) - - -
Total Other Operating Expenses 7,439,363 18,682,016 11,893,541 2,558,455 446,683 6,289,887
16. Other Non Operating Income
EAC EHI
11/30/2016
12/31/2016 1/31/2017 11/30/2016 12/31/2016 1/31/2017
Other Non Operating Income
1. Interest Income - - - - - -
Total Other Income - - - - - -
17. Other Non Operating Expense
EAC EHI
11/30/2016 12/31/2016
2
1/31/2017 11/30/2016 12/31/2016 1/31/2017
Other Non Operating Expense
1. Realized Foreign Exchange (Gain)/Loss 956 19,612 (1,449) 488 375 311
2. Unrealized MTM on Fx 118,859 (76,815) (248,070) - - -
3. Amortization of Debt Issuance 3 214,773 6,959,446 292,780 - - -
Total Other Non Operating Expense 334,587 6,902,243 43,260 488 375 311
21. Other Income and Expenses
EAC EHI
11/30/2016 12/31/2016
2
1/31/2017 11/30/2016 12/31/2016 1/31/2017
Other Income and Expenses
1. Other Income 4 (19,350) 49,956 (2,771,735) - - -
2. Other Expense 5 791,839 (551,969) 14,908 - - -
3. Other 6 - 3,641,005 (128) - - -
Total Other Expense 772,490 3,138,992 (2,756,954) - - -
25. Other Reorganization Fees
EAC EHI
11/30/2016 12/31/2016 1/31/2017 11/30/2016 12/31/2016 1/31/2017
Other Reorganization Fees
1. Legal Expenses 1,250,000 1,535,499 2,091,861 - - -
2. Audit/Accounting - - - - - -
3. Other - - 25,000 - - -
Total Other Reorganization Fees 1,250,000 1,535,499 2,116,861 - - -
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 Certain balances for December 2016 as originally reported in the December MOR were adjusted to reflect, among others, certain year-end adjustments.
3 Increase to Amortization of Debt Issuance pertains to the put option premium and closing fees on the DIP term loan being expensed.
4 Change in Other Income relates to a legal settlement received
5 Change in Other Expense pertains to a reversal of previous accruals as noted in the DIP Financing Order [Docket No. 133]
6 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.
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
1/31/2017
1/1/17 - 1/31/17
EAC EHI
Total Cash Receipts 1 7,838,767 8,771,726
Disbursements
Payroll 5,943,453 4,484
Employee Benefits and Other 1,020,883 21,128
Aircraft and Equipment Leases - 1,163,615
Freight and Fuel 895,719 1,653,135
Physical Goods 1,267,405 1,460,992
Capex 292,352 446,700
Insurance 1,509,850 -
Other Operating Expenses 3,252,065 1,486,220
Professional Fees 644,089 -
Debt Service 2 964,162 -
Total Disbursements 15,789,977 6,236,274
Net Cash Flow (7,951,211) 2,535,453
CASH RECONCILIATION:
Beginning
Cash (Unrestricted) 2,523,804 306,690
Net Financing Proceeds from DIP Facilities 3 21,500,000 -
Total Cash Disbursements 4 (14,609,032) (6,236,274)
Other 5 (5,525,961) 6,155,585
Closing Balance 3,888,811 226,002
1 Cash collections are swept daily to the pre-petition Existing First Lien Credit Facility 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 January 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:
January 2017
6. ACCOUNTS PAYABLE $0
MONTH: January 2017
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 55,759 - - 55,759
6. OTHER (SEE LIST BELOW) 849,324 1,745,773 (1,659,739) 935,358
7. TOTAL FEDERAL TAXES 905,083 1,745,773 (1,659,739) 991,117
STATE AND LOCAL
8. WITHHOLDING 1 - - - -
9. SALES 2 - - - -
10. EXCISE 2,435 1,297 - 3,732
11. UNEMPLOYMENT - - - -
12. REAL PROPERTY 7,041 - (7,041) -
13. PERSONAL PROPERTY 2,466 1,768 - 4,234
14. OTHER (ATTACH LIST) - - - -
15. TOTAL STATE & LOCAL 11,942 3,065 (7,041) 7,966
16. TOTAL TAXES 917,025
1,748,838 (1,666,781) 999,083
BEGINNING
TAX
LIABILITY
AMOUNT
WITHHELD AND/
OR ACCRUED
AMOUNT
PAID
ENDING
TAX
LIABILITY
Employment Tax 809,324 1,745,773 (1,659,739) 895,358
India 40,000 - - 40,000
6. OTHER 849,324 1,745,773 (1,659,739) 935,358
Erickson Incorporated Monthly Operating Report
Case Number: 16-34393 Accrual Basis-4
1/31/2017
Accounts Receivable
EAC EHI
Accounts Receivable Aging 11/30/2016 12/31/2016
1
1/31/2017 11/30/2016 12/31/2016 1/31/2017
1. 0-30 18,264,969 8,329,867 9,718,988 15,960,655 15,303,393 17,970,561
2. 31-60 2,190,489 4,160,852 729,787 253,419 562,209 263,596
3. 61-90 541,166 614,798 2,045,016 247,472 41,552 42,938
4. 91+ 2 1,174,390 5,387,354 7,044,744
3,085 136,284 164,281
5. Total Accounts Receivable 22,171,014 18,492,870 19,538,535 16,464,631 16,043,438 18,441,376
6. Amount Considered uncollectible (821,692) (5,477,657) (4,656,065) (7,922) - (2,600,000)
7. Accounts Receivable Net 21,349,323 13,015,214 14,882,470 16,456,708 16,043,438 15,841,376
Other Accounts Receivable 1,898,220 3,779,621 4,223,201 749,483 999,998 1,460,102
Total AR 23,247,543 16,794,834 19,105,671 17,206,192 17,043,436 17,301,478
Aging of Postpetition Taxes and Payables
TAXES PAYABLE 0-30 DAYS 31-60 DAYS 61-90 DAYS 91+ DAYS TOTAL
1. FEDERAL 991,117 - - - 991,117
2. STATE 7,966 - - - 7,966
3. LOCAL - - - - -
4. OTHER (ATTACHED LIST) - - - - -
5. TOTAL TAXES PAYABLE 999,083 - - - 999,083
6. ACCOUNTS PAYABLE 6,497,419 171,215 366,223 - 7,034,856
Other Accounts
Payable 3 - - - - 4,866,295
Total Accounts Payable 11,901,151
1 Certain balances for December 2016 as originally reported in the December MOR were adjusted to reflect, among others, certain year-end adjustments.
2 Increase in 91+ AR relates to a reclassification of a previously recorded non-current AR into trade AR.
3 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: January 2017
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 - 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
Month End - January 2017
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 4,111,730 - 4,111,730 267,803 - 267,803 4,379,533
2.
ADD: TOTAL DEPOSITS NOT CREDITED - - - -
3. SUBTRACT: OUTSTANDING CHECKS (232,572) (37,896) (270,469) (122,458) (1,446) (123,904) (394,373)
4. OTHER RECONCILING ITEMS 1,039 37,896 8,614 47,549 78,789 1,446 1,867 82,103 129,652
5. MONTH END BALANCE PER BOOKS 3,880,197 - 8,614 3,888,810 224,134 - 1,867 226,002 4,114,812
6. NUMBER OF LAST CHEK WRITTEN 87062 51930 217738 010922
Monthly Operating Report
Accrual Basis-5
1/31/2017
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: January 2017
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
AMOUNT
PAID
TOTAL
PAID
TO DATE
TOTAL
INCURRED
& UNPAID 2
1. Haynes & Boone LLP 12/16/2016, Docket # 191 $0 $480,747 $582,344
2. Alvarez & Marsal 12/16/2016, Docket # 191 $298,020 $298,020 $425,453
3. Houlihan Lokey 12/2/2016, Docket # 133 $129,285 $264,689 $0
4. Goldberg Kohn Ltd 12/2/2016, Docket # 133 $87,594 $191,474 $0
5. Daugherty, Fowler, Peregrin, Haught & Jenson 12/2/2016, Docket # 133 $129,190 $129,190 $0
6. Sayfarth Shaw LLP 12/2/2016, Docket # 133 $0 $102,823 $27,613
7. Loughlin Management Partners + Co 12/2/2016, Docket # 133 $0 $97,412 $0
8. K&L Gates LLP 12/2/2016, Docket # 133 $0 $28,121 $28,622
9. Mark Weisbart 12/2/2016, Docket # 133 $0 $10,458 $5,538
10. Shipman & Goodwin 12/2/2016, Docket # 133 $0 $6,095 $0
11. TOTAL PAYMENTS TO PROFESSIONALS $644,090 $1,609,029 $1,069,571
1 Excludes professional firms that did not receive payment during the month of January; 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 fees and expenses incurred and unpaid as of January 2017.
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.
6. TOTAL $389,928 $15,210,862 $614,537
18
Erickson Incorporated
Case Number: 16-34393
Monthly Operating Report
Accrual Basis-6 (pg 1 of 2)
1/31/2017
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
1 HELIFLEET 2013-01, LLC N300EV 4 - - -
2 HELIFLEET 2013-01, LLC N367EV 4 - - -
3 HELIFLEET 2013-01, LLC N787SR 4 - - -
4 HELIFLEET 2013-01, LLC N814EH 4 - - -
5 HELIFLEET 2013-01, LLC N8227J 4 - - -
6 HELIFLEET 2013-01, LLC N366EV 4 - - -
7 HELIFLEET 2013-01, LLC N415EV 4 - - -
8 THE MILESTONE AVIATION GROUP LIMITED 5 - - -
9 SQN HELO, LLC 48,885 - 146,655
10 SQN HELO, LLC
56,217 - 168,651
11 SQN HELO, LLC 51,811 - 155,432
12 SQN HELO, LLC 6 - - -
13 SQN HELO, LLC 39,960 - 119,880
14 ITC LEASING N708H 7 - - -
15 ITC LEASING N745H 7 - - -
16 ITC LEASING N746H 7 - - -
17 SENTRY AIRCRAFT LEASING 8 105 EV 8 - - -
18 SENTRY AIRCRAFT LEASING #171CJ 8 - - -
19 SENTRY CAPITAL CORP #368EV 8 - - -
20 SENTRY CAPITAL CORP #393AL 8 - - -
21 SENTRY AIRCRAFT LEASING #N437CA 8 - - -
22 SENTRY AIRCRAFT LEASING #N502FS 8 - - -
23 VARIANT AIRCRAFT FUND 28198 LLC 47,855 - 143,564
1 Amounts Scheduled are January Rent payments.
2 Payments on post petition rent/leases in January.
3 Amounts include scheduled November, December and January Rent payments for the full month current outstanding, they have not
been prorated to reflect solely postpetition amounts for November.
4
Payments made in January were done so in accordance with the Debtors’ Emergency Motion for Entry of an Order Approving
Stipulation with HELIFLEET 2013-01, LLC Under 11 U.S.C. § 1110(b) [Docket No. 229].
5 Payments made in January were done so in accordance with the Debtors’ Emergency Motion for Entry of an Order Approving
Stipulation with VERTICAL AVIATION NO. 1 LLC Under 11 U.S.C. § 1110(b) [Docket No. 275].
6 Payments made in January were done so in accordance with the Debtors’ Emergency Motion for Entry of an Order Approving
Stipulation with SQN HELO 6, LLC Under 11 U.S.C. § 1110(b) [Docket No. 284].
7 Payments made in January were done so in accordance with the Debtors’ Emergency Motion for Entry of an Order Approving
Stipulation with ITC-AEROLEASING, INC. Under 11 U.S.C. § 1110(b) [Docket No. 252].
8 Payments made in January were done so in accordance with the Debtors’ Emergency Motion
for Entry of an Order Approving
Stipulation with SENTRY AIRCRAFT LEASING Under 11 U.S.C. § 1110(b) [Docket No. 235]
19
Erickson Incorporated
Case Number: 16-34393
Monthly Operating Report
Accrual Basis-6 (pg 2 of 2)
1/31/2017
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
24 AMERICAN MULTIPLEX LLC 9 1,150 2,300 (1,150)
25 KING ISLAND NATIVE CORPORATION 9 2,200 4,400 (2,200)
26 MUNICIPALITY OF ANCHORAGE 9 1,903 3,806 (1,903)
27 PARK PLAZA II APARTMENTS 9 2,240 4,480 (2,240)
28 ROGERS PARK 9 900 1,800 (900)
29 BURRILL REAL ESTATE INC 9 11,324 22,817 (11,493)
30 JACKSON COUNTY AIRPORT AUTHORITY 9 2,171 4,342 (2,171)
31 JACKSON COUNTY AIRPORT AUTHORITY 9 426 851 (426)
32 SRI EIGHT MACADAM LLC 9 45,651 91,301 (45,474)
33 WEST CASCADE PROPERTIES 9 2,841 5,681 (2,841)
34 WESTERN EQUIPMENT FINANCE 9 1,795 3,590 (1,795)
35 ACME SUITES/AYALA PROPERTIES LLC 10 2,000 4,000 (1,467)
36 ROBERT F GREENWELL CO LLP 10 43,929 87,859 (32,215)
37 SMITH RANCHES 9 11,086 22,173 (11,086)
38 T&D FAMILY TRUST (TIM & DENISE SMITH) 9 11,514 23,027 (11,514)
39 J&H CP, LLC - - -
40 ENTERPRISE FM TRUST 11 4,072 - 9,229
41 WELLS FARGO REVOLVER 12 - 14,928,434 -
Total 389,928 15,210,862 614,537
1 Amounts Scheduled are January Rent payments.
2 Payments on post petition rent/leases in January.
3 Amounts include scheduled November, December and January Rent payments for the full month current outstanding, they have not
been prorated to reflect solely postpetition amounts for November.
9
February Rent was prepaid on January 26,2017
10
February Rent was prepaid on January 26,2017, a portion of this is offset by the prepetition portion of November still outstanding
due to the fact that the November invoices were not prorated.
11 Prepetition portion of the November invoice as well as the December and January invoices outstanding, note that payment on the
December and January invoices made February 1, 2017
12 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: January 2017
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.
11. Payroll taxes related to prepetition hours worked as well as payment of property taxes related to 7/1/16 to 6/30/17 tax cycle.
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
