Trico vessel buyer to pull out of deal; DIP loan payment on hold

By Caroline Salls

Pittsburgh, Jan. 7 - Trico Marine Services, Inc. said PACC Offshore Services Holding Pte. Ltd. plans to cancel its memorandum of understanding with Trico Marine Assets, Inc. to buy the Trico Mystic vessel, according to an 8-K filed Friday with the Securities and Exchange Commission.

PACC Offshore is also requesting immediate release of the purchase price. It offered to buy the Trico Mystic and Trico Moon vessels for $15.64 million, according to a court order approving the sale.

Trico said neither the memorandum of understanding nor the bankruptcy court order approving the sale gives the buyer a right to the return of the escrowed sale proceeds.

Trico said it believes that any refusal to close in accordance with the sale order may be in bad faith, and the company reserved its rights "to seek any appropriate remedy to effectuate the provisions of the order."

As previously reported, Trico agreed to use a portion of the proceeds from the vessel sale to reduce its obligations to debtor-in-possession financing lender Tennenbaum Capital Partners, LLC in exchange for Tennenbaum's consent to the use of cash collateral.

Although the sale of the Trico Moon closed on Dec. 10, the company said the sales proceeds have not been applied to the Tennenbaum obligations as a result of the failure to close the Trico Mystic sale.

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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