Trico to restructure - plans to file for bankruptcyNews // September 17, 2004
The company's stock fell 6 cents, or 23.4 per cent, to 20 cents on three times its average volume in afternoon trading on the Nasdaq.
Trico said that more than two-thirds of its senior noteholders agreed to support the company's restructuring plan, under which Trico intends to convert US$250 million of 8.875 per cent senior notes due 2012 into equity. The restructuring is expected to have little or no effect on the company's day-to-day operations.
The company said that although Trico Marine Assets and Trico Marine Operators will also file for bankruptcy, it does not expect any of its foreign units, affiliates or assets will be subject to Chapter 11 proceedings.
Under the restructuring agreement, chief executive Thomas Fairley, chief financial officer Trevor Turbidy and non-executive chairman Joseph Compofelice will all remain in their positions.
The parties to the restructuring agreement have signed binding agreements to support the restructuring on proposed terms, subject to finalization of definitive agreements and related documentation and the satisfaction of certain specified conditions.
Based on these agreements, the company believes it has the support of the requisite body of the holders of the Senior Notes to implement the restructuring through a prepackaged or prearranged bankruptcy.