New Orleans-based offshore vessel services company Tidewater estimates that its interest and operating lease expenses will be reduced by about $73 million annually under the reorganization.
Tidewater, one of the oldest, largest, and most experienced providers of the marine support services for the offshore oil industry, has emerged from bankruptcy after successfully completing a reorganization that was confirmed by the United States Bankruptcy Court for the District of Delaware, the New Orleans-based firm revealed on Monday.
Under the reorganization plan, Tidewater eliminated about $1.6 billion in principal of outstanding debt. Considering the rejection of certain sale-leaseback agreements, Tidewater estimates that interest and operating lease expenses will be reduced by about $73 million annually.
Also through the reorganization, the company’s lenders and senior note holders receive 95 percent of the stock in the reorganized company, as well the right to buy company-issued shares based on the firm’s value after reorganization.
“Today marks the completion of a restructuring and recapitalization that allows the company to move forward with a solid financial foundation from which we expect to continue to strengthen our business and grow,” Tidewater President and Chief Executive Officer Jeffrey Platt said in a statement.
Tidewater, which was founded in 1956, filed for bankruptcy protection in Delaware on May 12. The company has a global footprint, with over 90 percent of its fleet working internationally in more than 60 countries.
Around the world, Tidewater transports crews and supplies, tow and anchor mobile rigs, assists in offshore construction projects, and performs a variety of specialized marine support services.
However, the company has been a victim of a global slowdown in oil drilling activities. In its most recent fiscal year, which ended March 31, Tidewater said it lost $660 million ($14.02 per share), compared to a loss of $160.2 million ($3.41 per share) during the previous fiscal year.
Tidewater completes financial restructuring, emerges from bankruptcy
