Tidewater to file for Chapter 11 bankruptcy

MAY 12, 2017 — Offshore services giant Tidewater Inc. (NYSE: TDW) plans to file for Chapter 11 bankruptcy protection by May 17.

The company said today that it has entered into an agreement with lenders and note holders to effectuate a proposed prepackaged plan of reorganization that, it says, will "substantially deleverage the company's balance sheet and better position the company to weather the extended downturn in the offshore energy industry while maintaining the company's position as a worldwide market leader in offshore vessel services."

Tidewater says the prepackaged plan has the support lenders holding 60% of the outstanding principal amount of loans under the credit agreement and holders of 99% of the aggregate outstanding principal amount of Tidewater's Senior Notes.

Tidewater management has been in discussions with the New York Stock Exchange about maintaining its current listing through the restructuring process. The company was recently notified by the NYSE that it has fallen below the continued listing standard that requires listed companies to maintain an average closing price per share of at least $1.00 over a consecutive 30 trading-day period, the company has notified the NYSE of its intent to cure and has until October 18, 2017 to regain compliance with that particular standard.

On completion of the restructuring, Tidewater expects to remain a publicly-traded company and, subject to compliance with all other NYSE listing standards, will continue to have its common stock listed for trading on the NYSE both during and after the restructuring process.

Jeffrey Platt, President and Chief Executive Officer of Tidewater, said, "We believe that successful completion of our restructuring will provide the necessary liquidity and operational flexibility for Tidewater to continue to operate at lower levels of activity until offshore drilling activity recovers and more reasonable levels of vessel utilization and day rates are restored."

What's in the prepackaged plan? More HERE



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