Trico Marine Services, Inc. today announced that the U.S. Bankruptcy Court for the District of Delaware approved the terms of a settlement agreement among Trico Marine, its subsidiaries Trico Shipping AS and Trico Supply AS (collectively "OpCo") and a steering committee of note holders who collectively hold approximately 83% of the aggregate principal amount of Trico Shipping's outstanding 11 7/8% senior secured notes due 2014 (the "Notes").
Under the settlement agreement, Trico Marine has agreed to compromise its outstanding claims against OpCo. Trico Marine will receive 5% of the new common stock of a reorganized OpCo along with warrants to acquire an additional 10% of the new common stock, as well as other consideration.
In conjunction with the settlement agreement, in order to implement the debt-for-equity swap, Trico Shipping expects to launch an out-of-court exchange offer and related solicitations (the "Exchange Offer") shortly for Note holders to exchange their Notes for a pro rata share of the new common stock of reorganized OpCo, and enter into arrangements with the lenders under Trico Shipping's working capital facility.
"This settlement is a major milestone for Trico Marine," said Richard A. Bachmann, Trico Marine's Chairman of the Board of Directors, President and Chief Executive Officer. "This clears the way for OpCo to significantly reduce its outstanding debt through an Exchange Offer, enhance liquidity and provide a strong foundation for us to continue in our overall restructuring efforts. We are pleased to be on the right track to effect a consensual agreement with our creditors at Trico Marine and at OpCo."
This press release does not constitute an offer to purchase, or a solicitation to purchase, or an offer to sell securities in any jurisdiction. Any such securities will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration. Trico Shipping has not commenced the Exchange Offer or the solicitation referred to above.
Additional information about Trico's restructuring and vessel specifications are available at the Company's website, www.tricomarine.com. For access to court documents and other general information about the Chapter 11 cases, is available at http://dm.epiq11.com/trico.