Trico Marine renegotiating DIP loan in light of operating results

By Caroline Salls

Pittsburgh, Aug. 5 - Trico Marine Services, Inc. is renegotiating the terms of its previously announced debtor-in-possession financing in light of its operating results, according to an 8-K filed with the Securities and Exchange Commission.

Trico announced in June that it had obtained a commitment for a $50 million nine-month debtor-in-possession financing facility from Tennenbaum DIP Opportunity Fund LLC.

At June 30, the company had $32 million of available cash, reflecting $22 million drawn from Trico Marine and Trico Shipping's working capital facilities during the quarter ended June 30.

In addition, Trico said all of its $769 million of consolidated outstanding debt was classified as current liabilities as of June 30.

According to the 8-K, Trico's cash and credit capacity have not been enough to allow it to meet its obligations, and its forecasted cash and credit capacity are not expected to be sufficient to meet its other commitments as they come due over the next year.

As previously reported, the company is in restructuring talks with its existing debtholders.

Trico said it may be forced to file for bankruptcy to implement a restructuring or achieve other changes to its cost structure.

The company's inability to meet past, current or future commitments could also necessitate a bankruptcy filing.

Trico is a The Woodlands, Texas-based provider of subsea, trenching and marine support vessels and services.

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