Trico makes deal to swap Trico Supply notes for stock, to miss coupon

New York, Oct. 29 - Trico Marine Services, Inc. said it has reached an agreement in principle with the holders of its 11 7/8% senior secured notes to exchange the notes for the stock of Trico Supply AS.

Trico also said it has obtained a forbearance agreement for the Nov. 1 interest payment on the notes.

The agreement has been reached in principle with the steering committee representing holders of 83% of the 11 7/8% notes.

All the outstanding secured debt of Trico Supply, including the debt of subsidiary Trico Shipping but excluding the $22 million priority credit facility, will be converted into 100% of the new common stock of Trico Supply.

The agreement also includes a new secured credit facility for up to $100 million which will be used to pay down the priority credit facility and to provide Trico Supply with working capital and liquidity.

According to the company, the parties are now finalizing negotiations and documentation. The process is expected to be completed in November and court approvals requested.

Trico Supply and the steering committee also expect to execute a forbearance agreement valid through Nov. 15 covering the scheduled Nov. 1 coupon payment on the notes.

Trico, a marine services company based in the Woodlands, Texas, filed for bankruptcy on Aug. 25. The Chapter 11 case number is 10-12653.

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