The U.S. Bankruptcy Court approved Tidewater’s Disclosure Statement and concurrently confirmed the Company’s Joint Prepackaged Chapter 11 Plan of Reorganization.
Jeffrey M. Platt, Tidewater’s president and chief executive officer states, “The substantial deleveraging of our balance sheet through the recapitalization contemplated by the Plan, as well as our strong liquidity position, should reassure our customer and vendor base of our ongoing ability to perform our contracts and meet our obligations while we weather the continuing headwinds in the offshore energy industry. Additionally, this restructuring will position us to consider possible targeted acquisition opportunities in an industry where consolidation is to be expected. We are working hard to complete the remaining steps necessary to emerge from bankruptcy by the end of this month.”
The Plan contemplates the following treatment of claims against and interests in the Debtors: The lenders under the credit agreement and the lessor parties to certain sale leaseback agreements holding claims thereunder will receive their pro rata share of (a) $225 million of cash, (b) subject to the considerations, common stock and, if applicable, warrants to purchase common stock, representing 95% of the pro forma common equity in reorganized Tidewater; and (c) new 8% fixed rate secured notes due in 2022 in the aggregate principal amount of $350 million.
The Plan requires that, at the time Tidewater emerges from bankruptcy, not more than 22% of the outstanding common stock will be held by non-U.S. citizens. Existing common stockholders of Tidewater will receive their pro rata share of common stock representing 5% of the pro forma common equity in reorganized Tidewater and six-year warrants to purchase additional shares of common stock of reorganized Tidewater. These warrants will be issued in two tranches, with the first tranche (the “Series A Warrants’) being exercisable immediately, at an aggregate exercise price based upon an equity value of the Company of approximately $1.71 billion, and the second tranche (the “Series B Warrants”) being exercisable immediately, at an aggregate exercise price based upon an equity value of the Company of $2.02 billion. Undisputed claims of other unsecured creditors such as customers, employee, and vendors will be paid in full in the ordinary course of business.
This energy-related transportation services provider filed for Chapter 11 protection on May 17, 2017, listing $5 billion in pre-petition assets.
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