Last week, Seacor Marine Holdings Inc. announced that the plan of reorganization for Montco Offshore Inc., which includes a new joint venture, was approved by the U.S. Bankruptcy Court for the Southern District of Texas.
Houma, La.-based Seacor Marine and Montco, Galliano, La., will form the new joint venture company by contributing certain liftboat vessels and other related assets. It also requires the joint venture to assume certain operating liabilities and debt associated with the liftboats and related assets. The new joint venture will consolidate the ownership and operation of 11 liftboats currently operated by a wholly-owned subsidiary of Seacor Marine, six liftboats currently operated by Montco, and two liftboats currently operated by an existing joint venture between affiliates of Montco and Seacor Marine.
Seacor Marine made a stalking horse bid to form a joint venture with Montco in June. The Galliano, La., liftboat company filed for Chapter 11 bankruptcy protection in March.
“I am pleased that we have reached this important milestone,” John Gellert, Seacor Marine’s CEO said in a statement. “This is a strategic transaction that combines distinctive assets at compelling values, along with a solid financial and operational foundation. The transaction will allow us to provide our domestic and international customers with an expanded fleet and superior services in offshore oil and gas and wind energy markets.”
The joint venture will take on approximately $131 million of debt from Montco’s pre-petition credit facilities. It is expected that Seacor Marine will hold at least 70% of all equity interests in the joint venture, and will appoint a majority of the board of managers. The closing of the transactions remains subject to the satisfaction of certain conditions set in Montco’s reorganization plan and the joint venture contribution agreement. It is expected that the transactions will close in early February 2018.
Founded in 1948, Montco has 99 employees and a fleet that includes two 335′ liftboats, two 245′ and two 235′. The 335′ Jill, completed in 2014, is the newest.