Trico Marine secures forbearances from lenders, senior noteholders

By Caroline Salls

Pittsburgh, Sept. 2 - Trico Marine Services, Inc. and indirect wholly owned subsidiary Trico Shipping AS have entered into forbearance agreements with working capital facility lenders Nordea Bank Finland plc, New York Branch and funds managed by Tennenbaum Capital Partners, LLC, as well as holders of Trico Shipping's senior secured notes, according to an 8-K filed Thursday with the Securities and Exchange Commission.

Trico said several financial covenants have not been or would not be satisfied as of Aug. 31 on the credit facility and the notes.

The covenants in question set the minimum cash requirements for the month ended Aug. 31 and the minimum monthly EBITDA requirements for the 12 months ended July 31.

Under the loan forbearance, the consenting lenders have agreed not to exercise their default related rights until the earliest of Oct. 1, Trico Shipping's failure to obtain funding to provide liquidity by Sept. 20, the occurrence of an event of default not covered by the agreement, the termination of the forbearance by the holders of a majority of the company's senior secured notes, the company's liquidity falling below $3.5 million as of Aug. 31 and any action against the collateral securing the credit facility obligations.

Meanwhile, the noteholders have agreed not to act on the defaults until the earliest of Oct. 1, any action against the collateral securing the notes, the occurrence of an event of default not covered by the agreement, the entry into any agreement by Trico Shipping or the announcement of any negotiations regarding plans to incur debt or other capital infusion without the noteholders' consent and the failure of the subsidiary's guarantors to enter into a new $22 million senior secured credit facility with some noteholders and Tennenbaum by Sept. 20.

The noteholder forbearance is subject to execution by holders of more than 50% of the total principal amount of the senior secured notes.

In addition, Trico said its securities will be delisted from the Nasdaq Stock Market LLC in connection with the company's Chapter 11 bankruptcy filing.

As a result, trading of the company's common stock will be suspended at the opening of business on Sept. 28.

After the stock is delisted from Nasdaq, Trico said it may trade on the OTC Bulletin Board or the Pink OTC Markets Inc., but only if at least one market maker decides to quote it.

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.

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