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    Tidewater's shareholders likely to suffer if restructuring completed

    Company News // February 9, 2017

    Tidewater says it made a net loss in its third quarter, which ended on 31 December 2016, of US$297.7 million, including US$253.4 million in asset impairment charges.

    Since mid-2016 the company has not met the 3.0x minimum interest coverage ratio covenant in its credit and loan agreements, but has secured limited waivers for these.

    The company said it continues to be actively engaged with its lenders and noteholders with respect to a potential restructuring of its debt arrangements. Its goal is to restructure in a way that will provide sufficient liquidity and a covenant package that will allow it to ride out the current market until conditions improve without a material risk of a future default.

    In a statement, Tidewater said that under all three of the most likely scenarios – a restructuring of its indebtedness without filing for bankruptcy; a negotiated restructuring of the company’s indebtedness under the protection of Chapter 11; or Chapter 11 reorganisation in the absence of a negotiated restructuring – it is likely that shareholders’ ownership interests will, at a minimum, be “significantly diluted.”

    The most recent limited waiver, which took effect on 27 January 2017, has extended the waiver of the unqualified audit opinion requirement and/or waived the minimum interest coverage ratio requirement until 3 March 2017.

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