Harvey Gulf emerges from Chapter 11 bankruptcy

Shane Guidry: Contract renewed for five more years

JULY 2, 2018 — Harvey Gulf International Marine reports that it has completed its financial restructuring and emerged from Chapter 11 bankruptcy proceedings. This marks the completion of the Plan of Reorganization approved by the bankruptcy court, just 77 days after Harvey Gulf’s prepackaged filing.

The company also reports that it has reached an agreement with Shane Guidry, its Chairman and CEO, to extend his employment contract for an additional five years from the date of emergence.

Mr. Guidry’s leadership of Harvey Gulf through the most significant downturn in the offshore services industry in more than 30 years has produced 58% average EBITDA margins over the past three years, peaking at 61%. The company says that retention of his services and the rest of his team was a key tenet of the restructuring transactions.

Under the reorganization, says Harvey Gulf, the company has shed approximately $1 billion in debt and emerges with a dramatically de-leveraged balance sheet. Additionally, it has paid all unsecured claims in full.

Harvey Gulf says it will combine its new financial strength with its long history of operational excellence as the industry leader in safety and environmental protection, which are best demonstrated by Harvey’s anticipated 5th consecutive year without a recordable incident on August 13th, as well as its 99.2% uptime record for vessels on long term contract over the past 10 years. The company has indicated it intends to expand and provide its expertise to its customers globally through mergers or acquisitions.

“The Chapter 11 restructuring process is extremely complicated, and the fact that Harvey Gulf emerged so quickly, while shedding a billion dollars of debt and adding over 40 new customers reflects the dedication, hard work, and tenacity of the entire Harvey Gulf team,” said Mr. Guidry. “Importantly, Harvey Gulf’s performance will continue well into the future, and the competition simply isn’t in a position to capitalize on the industry’s shift to cleaner energy. Nor are they capable, either financially or from the organizational leadership standpoint, of redesigning their fleets to compete and perform in this new age.”