ROVworld Subsea Information

Trico Supply Group announces agreement in principle with lenders and accepts not
Date: Tuesday, May 31, 2011 @ 10:00:00 EDT
Topic: GENERAL NEWS


Trico Supply Group announces agreement in principle with lenders and accepts notes for exchange in out-of-court financial restructuringTrico Supply Group announces agreement in principle with lenders and accepts notes for exchange in out-of-court financial restructuring

Trico Supply AS and Trico Shipping AS (together the "Company" or "Trico Supply Group"), subsidiaries of Trico Marine Services, Inc. and whose subsidiaries include DeepOcean AS and CTC Marine Projects Ltd., announced today that they have reached an agreement in principle with their working capital facility lenders. The Company also announced that it has accepted for exchange $396,454,000, or over 99.1%, of its 11 7/8% Senior Secured Notes due 2014 that had been tendered in its exchange offer (the "Exchange Offer") to noteholders. In the Company's out-of-court restructuring, these noteholders, the Company's lenders and Trico Marine entities holding intercompany claims and interests, will be equitized and proportionately share all the common stock (the "New Common Stock") of DeepOcean Group Holding AS, a new Norwegian private limited company. The Company and its subsidiaries will no longer be subsidiaries of Trico Marine but of DeepOcean Group Holding AS, a new company to be based in Europe. Operations will continue in the normal course.



The Exchange Offer is expected to conclude on or about April 28, 2011. As the Company expects to finalize the out-of-court restructuring, the Company has set aside its efforts to seek further support for a prepackaged plan of reorganization.

"Today's announcement represents a major accomplishment in the Trico Supply Group's financial restructuring efforts and we are very pleased to have received the approval from its noteholders and other creditors," said Richard A. Bachmann, Trico Marine's Chairman of the Board of Directors, President and Chief Executive Officer. "The debt-to-equity swap will enable the Trico Supply Group to reduce total debt to approximately $75 million and provides the Company with increased operating flexibility and a more appropriate capital structure for a company its size. Once the restructuring is complete, we believe that the Company, including its primary business units of DeepOcean and CTC Marine, will be in an excellent position to take advantage of improving market conditions and global growth opportunities."

Mr. Bachmann added, "The Trico Supply Group looks forward to an improved liquidity position from which it will be able to better serve its customers. We remain committed to quality, consistency and customer service, and we appreciate the dedication of all our employees, whose hard work is critical to our success. We also thank our customers, vendors and all of our stakeholders for their continued support."

The restructuring will reduce the Company's total debt outstanding from $468 million to approximately $75 million. As part of the restructuring, the Company will also receive a new $100 million first priority senior secured credit facility that would be used to refinance some existing debt and fund working capital borrowings.

Trico Marine and some of its subsidiaries will receive shares of common stock of DeepOcean Group Holding AS. However, the out-of-court financial restructuring of the Trico Supply Group does not otherwise alter Trico Marine's pending bankruptcy proceeding before the US Bankruptcy Court.

Additional information regarding the Exchange Offer will be filed with the SEC in our 8-K later today.

The Exchange Offer is being made, and the New Common Stock is being offered and issued within the United States only to "qualified institutional buyers" as defined in Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") or institutional "accredited investors," as defined in Rule 501 under the Securities Act, and outside the United States to non-U.S. investors. The New Common Stock to be offered has not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.







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