Gulfmark Offshore filed with the U.S. Bankruptcy Court a Chapter 11 Plan of Reorganization and related Disclosure Statement.
According to the Disclosure Statement, “Although the Debtor has not yet obtained committed exit financing, the Debtor, its advisors, and the advisors for the Consenting Noteholders have been in advanced negotiations with both of the Company’s secured lending groups regarding the terms under which the existing lenders are willing to lend to the Company after the effective date of the Plan. The Debtor is hopeful that it will reach a resolution with its existing lenders in the near term. If the Debtor is unsuccessful in reaching a resolution with its existing lender groups on such exit financing terms, it may seek exit financing from other sources. The Debtor and its advisors also continue to explore options to deleverage the Company and maximize the value of its business.”
In addition, “After the approval of the applicable Rights Offering Procedures…the Debtor will launch (a) a rights offering for New Common Shares and New Noteholder Warrants….The combined aggregate amount of proceeds to be received by the Debtor under the two Rights Offerings will be $125 million.”
The Disclosure Statement continues, “The Debtor will use proceeds from the Rights Offerings, the professional fee escrow account (the ‘Fee Escrow Account’), and plus cash on hand to: (i) provide additional liquidity for working capital and for general corporate purposes; (ii) pay all Allowed Administrative Expense Claims payable on or after the Effective Date; (iii) pay in cash in full the DIP Intercompany Facility Claims; and (iv) fund distributions under the Plan. The Restructuring will leave the Debtor’s and its indirect and direct subsidiaries’ businesses intact and will substantially deleverage the Company’s capital structure, reducing its unsecured funded debt from greater than $448.2 million to zero. This deleveraging will enhance the Debtor’s long-term growth prospects and competitive position and allow the Debtor to emerge from the Chapter 11 Case as a stronger, reorganized entity better able to withstand a challenging market environment facing providers of offshore support vessels and marine support services to the offshore energy industry.”
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