Trico Marine Services files liquidation planNews // May 23, 2011
MarketWatch reports that days after Trico Marine Services spun off its marine supply and shipping businesses, the company filed a bankruptcy liquidation plan that proposes to pay its unsecured convertible noteholders less than six cents on the dollar.
Trico unveiled its liquidation plan last week in US Bankruptcy Court in Wilmington, Delaware, less than a week after the company completed the out-of-court portion of its restructuring effort.
The out-of-court restructuring saw the bankrupt parent company hand over its valuable operating units to a group of high-yield noteholders. Unlike Trico Marine, the supply and shipping businesses, now a private Norwegian company called DeepOcean Group Holding AS, weren't part of the Chapter 11 case.
Under the company's liquidation plan, creditors of the companies in Chapter 11 will get 5 per cent of new DeepOcean stock plus warrants. Trico estimates the stocks and warrants are worth somewhere between US$22 million and US$37 million.
A group of convertible noteholders, owed US$162 million from Trico's holding company, will get 29.5 per cent of that stake, for an expected recovery of 5.5 per cent on its claims.
The bulk of the new shares and warrants, 70.5 per cent, will go to Trico 8.125 per cent noteholders as payment for their deficiency claims. They'll recover about 10.7 cents on the dollar on those claims, which total US$200.4 million.
General unsecured creditors, owed about US$3.1 million, will divvy up US$250,000 in cash for a recovery of about eight cents on the dollar.