Tidewater and more than 25 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 17-11132. The Company, which provides energy service-related offshore service vessels and marine support services, is represented by Daniel J. DeFranceschi of Richards, Layton & Finger.
The Company announced that the filing was initiated in order to pursue a Prepackaged Plan of Reorganization in accordance with its restructuring support agreement (RSA) with certain creditors to effectuate a comprehensive balance sheet restructuring. Concurrent with the Chapter 11 filing, Tidewater also filed with the Court a Joint Prepackaged Plan and related Disclosure Statement. The Prepackaged Plan is supported by lenders holding approximately 60% of the outstanding principal amount of loans under the credit agreement and Noteholders holding 99% of the aggregate outstanding principal amount of the senior notes. Collectively, these supporting lenders and noteholders also constitute a majority in number of the holders of general unsecured claims.
According to the Disclosure Statement, “On the Effective Date, the initial directors of the New Board shall consist of seven (7) directors composed of (i) the Chief Executive Officer and (ii) six (6) directors designated by the Requisite Consenting Noteholders and the Requisite Consenting Tidewater Lenders subject to compliance with the Jones Act.”
Jeffrey M. Platt, Tidewater’s president and C.E.O., states, “After much thought and successful negotiations with certain of our economic stakeholders, we decided that commencing the chapter 11 cases was necessary to create financial stability which would allow Tidewater to remain a formidable competitor given this unprecedented industry downturn.”
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