Trico concludes agreement with GE Capital News
// July 9, 2004
Trico Marine Services has announced that it has reached an agreement withGeneral Electric Capital Corporation (GECC) to provide US$1.7 million in cashin lieu of letters of credit to secure the payment and performance pursuant toits master bareboat charter agreement with GECC dated September 30, 2002.
The company became obligated to provide the additional security when, on March 11, 2004, its S&P corporate credit rating was downgraded below the B-level.
Under the Master Charter, the company must provide letters of credit within 30 days of receiving notice from GECC. However, due to the company's inability to provide the additional letters of credit in a timely manner due to restrictions in other agreements, GECC agreed to accept US$1.7 million in cash deposits, plus forbearance fees. GECC also agreed to forbear for six months from exercising its remedies under cross-default provisions in the Master Charter related to the company's failure to pay interest due on its 8 7/8% senior notes due 2012.
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