DeepOcean Group Holding AS commences operations as independent European company following successful completion of debt for equity exchange
DeepOcean Group Holding AS, a new Norwegian private limited company, today announced that it has commenced operations as an independent company following the successful completion of an out-of-court restructuring of the former Trico Supply Group of Trico Marine Services, Inc. Pursuant to the out-of-court restructuring, Trico Supply AS and Trico Shipping AS, and subsidiaries including DeepOcean AS, and CTC Marine Projects Ltd., have been separated from Trico Marine and will operate as subsidiaries of DeepOcean Group. DeepOcean Group and its subsidiaries will continue to operate in the normal course.
DeepOcean Group also announced today that John R. Castellano has been named interim Chief Executive Officer of the Company, effective immediately. Mr. Castellano is a Managing Director of global business-advisory firm AlixPartners, LLP, and has been working with Trico Supply since June 2010. Mr. Castellano will be focused on completing DeepOcean Group's transition from Trico Marine, and in developing a European corporate headquarters. DeepOcean Group is also well along in its search to identify additional individuals to serve on the Company's Board of Directors of DeepOcean Group, and expects to announce the first of these appointments in the near future. The current senior management teams of DeepOcean and CTC will remain in place.
"We are very pleased to begin operating DeepOcean Group as an independent company," said Mr. Castellano. "Through this successful process, we have been able to reduce DeepOcean Group's total debt outstanding to approximately $75 million, giving the Company a more appropriate capital structure. Our increased financial flexibility and improved liquidity position will allow the Company to take better advantage of improving market conditions and global growth opportunities, and position the Company to be a stronger partner to our stakeholders going forward."
Mr. Castellano added: "I intend to work closely with the Company's dedicated employees to continue delivering consistent quality and excellent customer service. I thank all our employees for their hard work and contributions during this process. I also wish to thank our customers and vendors for their continued support through a complex restructuring."
In connection with the restructuring and following a previously announced agreement in principle on April 21, 2011, Trico Supply and Trico Shipping successfully completed an out-of-court debt-for-equity exchange (the "Exchange") with certain holders of Trico Shipping's 11 7/8% Senior Secured Notes due 2014 (the "Noteholders"), the Trico Supply Group's working capital facility lenders and certain Trico Marine entities holding intercompany claims and interests. The common stock of DeepOcean Group is held by these Noteholders, Trico Supply Group's former lenders, and certain Trico Marine entities. While Trico Marine and some of its subsidiaries will receive shares of common stock of DeepOcean Group, Trico Supply Group's out-of-court financial restructuring does not otherwise alter Trico Marine's pending bankruptcy proceeding before the U.S. Bankruptcy Court.
Improved Financial Strength
The Exchange reduces DeepOcean Group's total debt outstanding to approximately $75 million from more than $450 million of the former Trico Supply Group. As part of the restructuring, DeepOcean Group has received a new $100 million first priority senior secured credit facility that will be used to refinance some existing debt and fund working capital.
About DeepOcean Group
DeepOcean Group is an integrated provider of subsea, trenching and marine support vessels and services. DeepOcean Group's subsea services and trenching/installation divisions control a well equipped fleet of vessels and operate a fleet of modern ROVs and trenching and other subsea protection equipment. DeepOcean Group's towing and supply division provides marine support vessels to the oil and gas industry. DeepOcean Group has a global presence including operations in the North Sea, United Kingdom, Mexico, Brazil, Southeast Asia and Australia.