U.S.-based offshore support vessel (OSV) provider Tidewater has received yet another limited waiver extension from its lenders and noteholders.
With reduced demand for offshore support vessels along with a higher number of newer generation vessels, the company has experienced a significant decline in the utilization of its vessels, average day rates received and vessel revenue.
The company has implemented a number of cost reduction measures to mitigate the effects of significantly lower vessel revenue and, given the currently challenging offshore support vessel market and business outlook, continues its efforts to reduce its operating costs and preserve its liquidity.
As previously reported, Tidewater has been in discussions with its principal lenders and noteholders to amend its various debt arrangements to obtain relief from certain covenants.
Pending the resolution of those discussions, the company had previously received limited waivers from the necessary lenders and noteholders which waived compliance with these covenants. The most recent limited waiver, which took effect on January 27, 2017, extended the waiver of the unqualified audit opinion requirement and/or waived the minimum interest coverage ratio requirement until March 3, 2017.
Following the expiry on last Friday, the company has received another extension of those waivers until March 13, 2017.