Offshore support vessel provider Tidewater is not seeking any further renewal of limited waivers from its lenders and noteholders following the expiry of the latest one.
After experiencing a significant decline in the utilization of its vessels, average day rates received, and vessel revenue due to lower oil and gas prices, Tidewater has implemented a number of cost reduction measures to mitigate these effects while continuing its efforts to reduce operating costs and preserve liquidity.
The company has been in talks since last year with its principal lenders and noteholders to amend its various debt arrangements to obtain relief from certain covenants.
Only in March the company got two extension from lenders and noteholders to sort out its debt arrangements.
In a statement on Tuesday, Tidewater reported that the latest waiver of covenant default from its lenders and noteholders expired in accordance with its terms on March 27, 2017, without a renewal being sought by the company.
Jeffrey M. Platt, President and Chief Executive Officer of the company, said, “Negotiations with our lenders and noteholders are progressing well, with a significant number of commercial points negotiated and, to our knowledge, resolved. However, work remains to resolve a small number of issues and to obtain the approval of our board of directors and final approval from the various financial institutions.
“In the meantime, while we press forward with our lender and noteholder groups in an effort to bring our negotiations to a successful conclusion, it is business as usual for the company.”
In case new debt terms are not negotiated, Tidewater will have to consider other options, including a possible reorganization under Chapter 11 of the federal bankruptcy laws.
Offshore Energy Today Staff