GulfMark Offshore filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, case number 17-11125. The Company, which provides offshore marine support and transportation services, is represented by Mark D. Collins of Richards, Layton & Finger.
The Company also announced it has reached an agreement with certain noteholders on a comprehensive financial restructuring that, when implemented, will strengthen the Company’s competitive and financial position. Holders of approximately 47% of the Company’s unsecured 6.375% Senior Notes due 2022 have signed a restructuring support agreement (RSA). Under the terms of the RSA, the Company will convert its outstanding senior notes to 35.65% of the equity in a reorganized GulfMark Offshore, resulting in the elimination of approximately $430 million in outstanding debt and approximately $27 million in annual interest payments.
The Company will also launch a $125 million rights offering to holders of its senior notes for an additional 60% of the equity in a reorganized GulfMark Offshore, providing liquidity to fund its operations. The $125 million rights offering will be backstopped by certain holders of the senior notes. Existing shareholders will receive 0.75% of the equity as well as warrants for an additional 7.5% of the equity in the reorganized GulfMark Offshore. The warrants will have a 7-year term and an exercise price based on a reorganized overall equity value of $1 billion.
Quintin Kneen, president and C.E.O., comments, “The restructuring will enhance our competitive position when contracting with customers and vendors, and it will substantially strengthen our capital structure and liquidity. While the industry conditions remain challenging, this debt reduction and rights offering will significantly enhance GulfMark’s financial position.”
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