
Tidewater in Trouble
New Orleans- based OSV firmTidewater Inc has actually been provided simply 3 even more weeks to get to a manage its lending institutions as well as shareholders prior to it will certainly be compelled to think about various other choices consisting of Chapter 11 personal bankruptcy.
The perilous information was disclosed Friday when Tidewater introduced it had actually obtained just minimal waivers from lending institutions as well as noteholders to prolong the target date for a bargain to till November 11, 2016. The target date was prolonged fromOct 21 as well as earlier fromSep 18.
With greater than 300 vessels, Tidewater has among the largest OSV fleets in the overseas oil as well as gas market.
Tidewater Inc (NYSE: TDW) has actually remained in conversations with its primary lending institutions as well as noteholders to modify the firm’s different financial debt plans to get remedy for specific commitments. The firm formerly reported that progression was being made in those settlements, nevertheless Tidewater currently confesses that as a result of the predicted weak task in overseas boring, a vital vehicle driver within the overseas solution vessel (OSV) market, even more settlements are required.
“While the company will continue to work toward amendments to its various debt arrangements that will be acceptable to all parties, there is a possibility that the lenders, noteholders and the company will not be able to negotiate new debt terms that are acceptable to all parties, in which case the company will have to consider other options, including a possible reorganization under Chapter 11 of the federal bankruptcy laws.”
Tidewater Inc shares were trading down 44% by the end of the day Monday at $1.67.