Trico Marine could seek bankruptcy protectionCompany News // August 6, 2010
Trico Marine Services has warned that it may need to seek bankruptcy protection even if talks to restructure its debt obligations are successful. The company said it may violate its financial covenants due to poor second-quarter results.
"The company may also be required to undertake bankruptcy proceedings as a result of its inability to meet its past, current and future commitments," it said in a statement.
As Reuters noted in a recent report, in June, in connection with a credit facility and obtaining forbearances for a notes offering, the company became subject to financial covenants requiring it to achieve certain EBITDA and liquidity targets.
Trico had available cash of US$32 million as of June 30. Its expected second-quarter adjusted EBITDA of US$7 million to US$9 million would likely be insufficient to meet the requirements of its financial covenants.
On June 14, Trico said it might have to seek bankruptcy protection if it fails to make convertible notes payments by the due date of June 17.
It said its forecasted cash and available credit capacity are not expected to be sufficient to meet its other commitments as they come due over the next year.