Trico sues bankruptcy lender, seeks to sell shipsNews // November 25, 2010
Bloomberg News reports that Trico Marine Services has asked a judge to prevent the lender funding its bankruptcy case from interfering in a sale of ships that could generate enough money to pay off the loan.
Trico sued lender Tennenbaum Opportunities Partners V LP, Obsidian Agency Services Inc, the loan agent, and two other lenders involved in the US$35 million loan.
Without an injunction, Tennenbaum may try to interfere in the sale of 10 ships by invoking its rights under the loan agreement, Trico said in the complaint, filed in the US Bankruptcy Court in Wilmington, Delaware.
Tennenbaum and the other lenders “have refused to reach a reasonable agreement with the debtors and insist on exercising remedies under the DIP financing agreement,” Trico said in its complaint.
Trico, based in Woodlands, Texas, is in bankruptcy for the second time in five years. The company signed a loan agreement with Tennenbaum Capital Partners LLC earlier this year that required it to file for Chapter 11 no later than September 8th.
Since filing for bankruptcy in August, Trico, Tennenbaum and a committee of unsecured creditors have fought over the details of a final loan agreement to fund the reorganization.
US Bankruptcy Judge Brendan Linehan Shannon gave Trico temporary permission to use cash set aside as collateral for Tennenbaum. The two sides will return to court on November 29th when Trico will seek permanent authority to use the cash.
Through a series of proposed sales, Trico said it expects to raise about US$33 million, more than enough to pay off the US$3.5 million it has spent from the Tennenbaum loan.
The bankruptcy case is In re Trico Marine Services, 10-12653. The lawsuit is Trico Marine Services v Obsidian Agency Services Inc. Both are in US Bankruptcy Court, District of Delaware (Wilmington).