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Tidewater Restructuring Support Agreement

CBP`s proposed reinterpretation of the Jones Act was strongly rejected by international shipowners, but supported by a number of known owners in the United States who operate light vessels. The company said last week it had reached a debt restructuring assistance agreement with some consenting creditors. Parts of the prefabricated plan include lenders under the credit agreement, holders of priority bonds and certain lenders under certain sales and repayment agreements that receive their share of $225 million in cash and the new 8% of fixed income secured bonds maturing in 2022, for an amount of USD 350 million. Tidewater Inc., along with 25 of its subsidiaries and related companies, filed a Chapter 11 application for a remedy in the Bankruptcy Court of the Borough of Delaware (Case No. 17-11132). Tidewater, a New Orleans-based company that provides offshore and naval support services, announced on May 12, 2017 that it had entered into a restructuring support agreement with approximately 60% of its senior creditors and 99% of its senior Notholders. In accordance with the first day statement, debtors enter Chapter 11 with a prefabricated reorganization plan that provides for the withdrawal of their priority debts and obligations in exchange for (1) 95% of the debtors` new reorganized equity, (2) $225 million in cash and (3) $350 million in new covered bonds. Existing shareholders receive 5% of the new equity of reorganized debtors and warrants. Debtors propose that their commercial creditors and other generally unsecured creditors be paid in full in the course of their ordinary operations.

You can find the plan here and the disclosure statement is available here. Epiq Bankruptcy Solutions is the proposed issuer of receivables and ratings. The business was assigned to the Honourable Brendan Linehan Shannon. In the course of Chapter 11 cases, Tidewater plans to reject certain sale-leaseback agreements for leased vessels currently in the company`s fleet and limit discard damage claims to approximately $131 million. However, the counterparties of the assignment-sale contracts dispute the amount of the rights to the reimbursement of recusal damages and a definitive solution to the amount of these rights will be the subject of a dispute. Therefore, there is no certainty as to the final amount of the sale-lease replacement damage replacement rights that will be treated in accordance with the prefabricated plan. „This restructuring allows us to continue to fulfil our current obligations to all our customers, employees and suppliers. We are confident that this move will allow GulfMark to seize opportunities as the slowdown continues and the market eventually recovers. * Tidewater Inc – Credit Agreement Lenders will receive new fixed income bonds maturing in 2022 for a total amount of $350 million „The restructuring will improve our competitive position on contracts with customers and suppliers, and this will significantly strengthen our capital structure and liquidity,“ said Quintin Kneen, President and Chief Executive Officer.

„While industry conditions remain challenging, this deleveraging and the offering of subscription rights will significantly improve GulfMark`s financial position.“ The prefabricated plan supports Tidewater`s lenders, who hold 60% of its outstanding loans under a credit agreement, and holders of 99% of the total outstanding priority bonds due between 2017 and 2025. „We believe that the success of our restructuring will allow Tidewater to provide the operational liquidity and flexibility necessary to allow Tidewater to continue operating at a lower level of activity until offshore drilling activities recover and a more appropriate level of vessel utilization and daily rates is restored,“ he said. GulfMark Offshore has also initiated Chapter 11 proceedings in the U.S. Bankruptcy Court for the Delaware District. . . .