13 Apr Tidewater Restructuring Support Agreement
Following the restructuring, Tidewater is expected to remain a listed company on the New York Stock Exchange. Tidewater Inc. – Prepackage Plan supported the company`s lenders holding 60pc of the outstanding loan capital under the credit agreement After the effect of the prepackaged plan, Tidewater expects it to eliminate approximately $1.6 billion of principal debt. In addition, the Company estimates that interest and operating costs will be reduced by approximately $73 million per year, given the rejection of some of the loan-to-risk agreements discussed above. The pre-packaged plan is supported by lenders who hold about 60% of the principal of outstanding loans under the loan agreement and by bondholders holding 99% of the total capital of seniors. Together, these lenders and bondholders also make up the majority of general unsecured debt holders. Parts of the pre-packaged plan include credit bond lenders, priority bondholders and certain lenders under certain sales and leasing contracts, which receive their share of $225 million in cash, as well as new fixed-rate bonds of 8% in 2022, for a total of US$350 million. Tidewater Inc. has signed a restructuring agreement (RSA) with some lenders and the company expects to go bankrupt under Chapter 11 by May 17.
The pre-packaged package is supported by the company`s lenders, who hold 60% of the outstanding loan capital under the credit contract, and by holders of 99% of the total capital of Tidewater`s priority bonds. Tidewater Inc. – Lender under a Loan Agreement, $225 million in cash The Company will continue to operate throughout the process and has completed a letter of commitment, subject to certain conditions, including the execution of final documentation, for financing in support of its operations during the process. During Chapter 11, Tidewater plans to reject certain lease-transfer agreements for leased vessels currently in the company`s fleet and limit the resulting claims to approximately $131 million. However, the counterparties of the transfer-credit contracts are challenging the amount of claims and a final solution to the amount of these rights will be the subject of litigation. Therefore, it is not clear whether the final amount of claims to refuse repayment of the lease-lease sale will be determined in accordance with the pre-packaged plan.