Trico unit misses payment, secures forbearance requiring restructuring

By Caroline Salls

Pittsburgh, Nov. 8 - Trico Marine Services, Inc. and indirect wholly owned subsidiary Trico Shipping AS have entered into a forbearance agreement with holders of their senior notes after failing to make the Nov. 1 interest payment due on Trico Shipping's 11 7/8% senior secured notes due 2014, according to an 8-K filed Monday with the Securities and Exchange Commission.

The forbearance agreement also covers Trico's failure to file its 10-Q for the third quarter by Nov. 9.

In addition, Trico Shipping and the note guarantors did not have a required $20 million of liquidity as of Oct. 31, and Trico Supply AS' last 12-month consolidated cash flow did not meet the required $45.9 million as of Sept. 30.

These defaults are also included in the forbearance agreement.

The noteholders have agreed not to act on their default-related rights before the earliest of the filing of any action to exercise rights against a significant part of collateral securing the senior secured notes or the commencement of insolvency proceedings against Trico Supply or Trico Shipping; the failure of the parties to enter into a senior secured notes restructuring term sheet by Nov. 8; an agreement by Trico Shipping or its subsidiaries to incur debt or other capital infusion other than with the noteholders; and Nov. 19.

Trico, a marine services company based in The Woodlands, Texas, filed for bankruptcy on Aug. 25 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 10-12653.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.