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|Tidewater Announces Entry Into Restructuring Support Agreement With Certain Lenders And Noteholders|
As contemplated by the RSA, the Company and certain of its subsidiaries expect to file chapter 11 cases in
The Company's management has been in discussions with the
Under the Prepackaged Plan:
The Company's Norwegian term loan facility, which is guaranteed by the Company and other contemplated debtors, will remain in place during the chapter 11 cases. Pursuant to a forbearance agreement, the lenders under this term loan facility have agreed that they will not enforce, or take action to enforce, any of the rights and remedies otherwise available to them under their term loan facility, subject to certain termination rights.
During the chapter 11 cases, Tidewater plans to reject certain sale-leaseback agreements for leased vessels currently in the company's fleet, and to limit the resulting rejection damages claims to approximately
Equity issued by reorganized Tidewater under the management incentive plan and upon exercise of the warrants issued to existing shareholders will further dilute the equity recovery for the holders of funded debt and sale/leaseback claims, as well as the existing shareholders described above.
Upon the effectuation of the Prepackaged Plan, Tidewater expects that it will eliminate approximately
All aspects of the Prepackaged Plan remain subject to
The Company expects that it has sufficient liquidity to operate its business while the chapter 11 cases are pending, and does not expect that its ability to serve its customers will be impaired in any way during such time. In addition, the Company anticipates paying its employees and vendors in the ordinary course of business during the chapter 11 cases.
Pursuant to the RSA, the Consenting Creditors have agreed to vote in favor of the Prepackaged Plan. The RSA is subject to customary termination rights upon the occurrence of certain events, including, without limitation, the failure of the Company to commence solicitation or file the Prepackaged Plan with the
Jones Act Warrants
For a more complete description of the terms and conditions of the RSA, we refer you to the Form 8-K that Tidewater expects to file with the
Tidewater is the leading provider of Offshore Service Vessels (OSVs) to the global energy industry.
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INVESTOR CONTACT: Tidewater Inc., Quinn P. Fanning, Executive Vice President and Chief Financial Officer, 713-470-5300; Joe Bennett, Executive Vice President and Chief Investor Relations Officer, 504-566-4506; MEDIA CONTACT: Jennifer E. Mercer, Epiq Strategic Communications for Tidewater, 310-712-6215
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