Trico Marine Services files pre-packaged Chapter 11

By Jeff Pines

Washington, Dec. 21 - Trico Marine Services Inc. filed a pre-packaged Chapter 11 with the U.S. Bankruptcy Court for the Southern District of New York Tuesday.

The reorganization plan will give the holders of Trico Marine's $250 million of 8 7/8% senior notes due 2012 all of the reorganized company's fully diluted common stock. Trico Marine shareholders would get warrants for 10% of the reorganized company's equity.

According to paperwork filed with the court, the Houma, La.-based provider of marine transportation services' reorganization plan has the support of 99.9% of its creditors who are eligible to vote on it.

Trico Marine said it expects to exit bankruptcy within 60 days.

The company has asked the court to approve a $75 million debtor-in-possession financing facility through Bear Stearns Corporate Lending Inc. Trico Marine plans to use a $55 million term loan to repay its pre-petition bank debt and have a $20 million revolver. It wants access to $10 million on an interim basis.

The interest rate will be Libor plus 500 basis points.

The facility comes with a 150 basis point upfront fee, a commitment fee of 100 basis points on the unused portion of the revolver after the effective date of the DIP.

The plan calls for the $75 million DIP to convert to a $75 million exit facility once the plan becomes effective and certain conditions are met, the company said.

Trico Marine listed its total assets as of Sept. 30 as $535.2 million and its total liabilities as $472.7 million.

The company's Chapter 11 case number is 04-17985.

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