Gulfmark Offshore filed with the U.S. Bankruptcy Court an Amended Chapter 11 Plan of Reorganization and related Disclosure Statement.
According to Gulfmark Offshore’s Disclosure Statement, “The Debtor is commencing this solicitation after extensive prepetition discussions with certain key creditor constituencies. As a result of these negotiations, on May 15, 2017, the Debtor entered into a restructuring support agreement (the ‘Restructuring Support Agreement’) with the Consenting Noteholders….Under the terms of the Restructuring Support Agreement, the Consenting Noteholders agree, subject to the terms and conditions of the Restructuring Support Agreement, to support the Debtor’s financial restructuring (the ‘Restructuring’) to be effected through the Plan….The Restructuring will leave the Debtor’s, and its indirect and direct subsidiaries’, businesses intact and will substantially deleverage the Debtor’s capital structure….This deleveraging will enhance the Debtor’s long-term growth prospects and competitive position and allow the Debtor to emerge from the Chapter 11 Case as a stronger, reorganized entity better able to withstand a challenging market environment facing providers of offshore support vessels and marine support services to the offshore energy industry. The Restructuring includes two financing components: the Rights Offerings and the Exit Financing….The Debtor, its advisors, and the advisors for the Consenting Noteholders have been in negotiations with the Company’s secured lending groups regarding the terms under which the existing lenders may be willing to provide exit financing to the Company. On June 21, 2017, DNB Markets, Inc., and DNB Capital LLC delivered a commitment letter to provide exit financing. The Debtor is evaluating the commitment letter which, if not accepted, expires on June 28, 2017. The Debtor remains hopeful that it will reach a resolution with its existing lenders in the near term. The Debtor is also in negotiations with certain of the Consenting Noteholders to provide exit financing. Exit financing in the principal amount of at least $100 million, the terms and conditions of which shall be acceptable to the Consenting Noteholders (the ‘Exit Financing’), is a condition to confirmation of the Plan. The Company will use proceeds from the Exit Financing, the Rights Offerings and cash on hand to: (i) provide additional liquidity for working capital and for general corporate purposes; (ii) pay all Allowed Administrative Expense Claims payable on or after the Effective Date; (iii) pay in cash in full the Intercompany DIP Loan Claims; (iv) pay certain existing indebtedness guaranteed by the Debtor; and (v) fund distributions under the Plan. The Debtor may be required to become an obligor under any facility for Exit Financing on or after the Effective Date.”
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