U.S. offshore vessel owner Seacor Marine has closed its joint venture with liftboat specialist Montco Offshore (MOI) announced last year.
Namely, Seacor Marine last June announced a stalking horse bid to form a joint venture with Montco Offshore which had earlier filed for Chapter 11 bankruptcy protection. This type of bid allows the distressed company to avoid low bids on its assets and choose the stalking horse to make the first bid.
The U.S. bankruptcy court approved the stalking horse bid in January 2018, allowing the two companies to continue with their JV plans.
On Friday, February 9 Seacor Marine announced that the formation and capitalization of the new joint venture company with MOI was consummated on February 8, 2018.
In accordance with the terms of a joint venture contribution and formation agreement, Seacor Marine and MOI contributed certain liftboat vessels and other related assets to the joint venture, and the joint venture assumed certain operating liabilities and indebtedness associated with the liftboat vessels and related assets.
The joint venture consolidates the ownership and operation of eleven liftboat vessels previously operated by a wholly-owned subsidiary of Seacor Marine, six liftboat vessels previously operated by MOI, and two liftboat vessels previously operated by a previously existing joint venture between an affiliate of MOI and an affiliate of Seacor Marine.
The JV assumed approximately $131 million of indebtedness from MOI’s pre-petition facilities which, apart from a guarantee of interest payments for two years after the closing of the transactions, is non-recourse to Seacor Marine.
Seacor Marine holds approximately 72% of all equity interests in the JV, and is entitled to appoint a majority of the board of managers of the JV.
Offshore Energy Today Staff