The U.S. Bankruptcy Court approved Gulfmark Offshore’s motion for authority to assume a restructuring support agreement (RSA).
As previously reported, “The terms of the restructuring are reflected in the RSA entered into between the Debtor and the Consenting Noteholders….The RSA is the by-product of extensive, arms’-length negotiations between the Debtor and the Ad Hoc Group. Through these negotiations the Debtor obtained the opportunity to pursue a balance sheet restructuring with the support of key stakeholders as it continues negotiations with other stakeholders around a value maximizing path forward. In accordance with the terms of the RSA, the Debtor filed on the Commencement Date the Plan [D.I. 48], which will enable the Debtor to leave its business intact and substantially de-lever its balance sheet by eliminating over $440 million in unsecured bond debt, including principal and accrued interest.”
In addition, “The Rights Offerings contemplate two rights offerings for the Reorganized GulfMark Entity designed to generate $125 million. Pursuant to the Rights Offerings, holders of Unsecured Notes Claims will have the right to purchase on the Effective Date a pro rata share of Subscription Rights to acquire 60.0% of Reorganized GulfMark Equity in the form of the Rights Offerings Securities. On May 15, 2017, the Debtor entered into the Backstop Commitment Agreement with certain of the Consenting Noteholders (collectively, the ‘Backstop Parties’ or the ‘Commitment Parties’) to ensure that the Rights Offerings are fully subscribed. In exchange for their commitment to backstop the Rights Offerings, the Debtor agreed to pay a non-refundable aggregate premium in an amount equal to $7,500,000 (representing 6% of the Rights Offerings) in the form of 3.6% of Reorganized GulfMark Equity.”
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