Tidewater shares plummet after bankruptcy warning

Tidewater shares plummet after bankruptcy warning Google Finance

OCTOBER 25, 2016 — Shares in offshore services giant Tidewater Inc. (NYSE: TDW) plunged yesterday after the company reported after markets closed Friday that discussions with its principal lenders and noteholders had received only limited waivers on compliance with its covenants. It has now received extensions of these waivers until only November 11, 2016.

Tidewater said that "recent industry data, including data regarding projected levels of offshore drilling activity, a primary driver of activity within the offshore service vessel (OSV) industry, has led the company to conclude that important debt terms will require further negotiation. While the company will continue to work toward amendments to its various debt arrangements that will be acceptable to all parties, there is a possibility that the lenders, noteholders and the company will not be able to negotiate new debt terms that are acceptable to all parties, in which case the company will have to consider other options, including a possible reorganization under Chapter 11 of the federal bankruptcy laws."

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