A lawsuit was filed by an investor in shares of Erickson Air-Crane Inc (NASDAQ:EAC) over alleged breaches of fiduciary duties and NASDAQ:EAC stockholders should contact the Shareholders Foundation at email@example.com
San Diego, CA -- (SBWIRE) -- 09/04/2013 -- An investor who currently hold shares of Erickson Air-Crane Inc (NASDAQ:EAC) filed a lawsuit against directors of Erickson Air-Crane Inc. over alleged breaches of fiduciary duties to the company and minority shareholders by approving and executing a recapitalization that, among other things, added about $300 million in liabilities to its already approximately $100 million debt.
Investors who are current long-term stockholder of shares of Erickson Air-Crane Inc (NASDAQ:EAC) have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
In March Erickson Air-Crane Inc announced to buy Evergreen Helicopter Inc, a unit of Evergreen International Aviation Inc.,, with $185 million cash, a $17.5 million unsecured note and $47.5 million of preferred stock
According to the complaint the plaintiff alleges that the recapitalization triggered by Erickson Air-Crane’s $250 million purchase of Evergreen Helicopters Inc was engineered by equity majority stakeholder of Erickson Air-Crane private equity fund group ZM Funds to protect its investment at the expense of other investors.
The plaintiff says that Evergreen Helicopters Inc, along with its parent, were in extreme financial distress, buried under about $300 million in debt and in a financial “death spiral” only a few steps away from bankruptcy and that alone made the $250 million value of the sale suspect. However, the plaintiff says that there were also other reasons the deal didn’t make sense for Erickson Air-Crane.
Erickson Air-Crane Inc reported that its annual Total Revenue rose from $118.24 million in 2010 to $180.82 million in 2012 and that its Net Loss of $8.25 million in 2010 turned into a Net Income of $15.23 million in 2012. Shares of Erickson Air-Crane Inc shares grew from $5.60 per share in August 2012 to $28.10 per share in May 2013.
On September 3, 2013, NASDAQ:EAC shares closed at $14.94 per share.
Those who purchased shares of Erickson Air-Crane Inc have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego