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    Tidewater enters Chapter 11 proceedings

    Company News // May 18, 2017

    Tidewater Inc and certain of its subsidiaries have filed voluntary petitions under Chapter 11 of Title 11 of the US Bankruptcy Court for the District of Delaware to pursue a prepackaged plan of reorganization in accordance with its previously announced restructuring support agreement (RSA).

    On 12 May debtors began soliciting votes on the Prepackaged Plan from certain of the company's creditors. The lenders under the company's Fourth Amended and Restated Revolving Credit Agreement, holders of the company's 2010 Notes, 2011 Notes, and 2013 Notes as well as holders of sale leaseback claims that are anticipated to arise from the company's rejection in bankruptcy of certain sale leaseback agreements pertaining to vessels chartered by certain debtors are treated as a single class for purposes of voting under the plan. 

    Tidewater said it plans to reject certain sale-leaseback agreements for leased vessels currently in the company's fleet, and to limit the resulting rejection damages claims to approximately US$131 million. 

    However, the sale-leaseback parties dispute the amount of the rejection damages claims and a final resolution of the amount of such claims will be subject to litigation. 

    "As a result, there is no certainty as to the final amount of sale-leaseback rejection damages claims that will be treated pursuant to the plan," Tidewater said.

    The plan is supported by lenders holding approximately 60 per cent of the outstanding principal amount of loans under the credit agreement and noteholders holding 99 per cent of the aggregate outstanding principal amount of the Senior Notes. 

    Collectively, these supporting lenders and noteholders also constitute a majority in number of the holders of general unsecured claims.


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