New Orleans-based Tidewater Inc. announced today that the company has emerged from Chapter 11 bankruptcy. The offshore service vessel operator exited bankruptcy after successfully completing its reorganization plan that was agreed to on July 17 by the U.S Bankruptcy Court for the District of Delaware.
Through the plan, Tidewater eliminated approximately $1.6 billion in principal of outstanding debt, and considering the rejection of certain sale-leaseback agreements, Tidewater estimates that interest and operating lease expenses will be reduced by approximately $73 million annually. The company said it believes that its substantially deleveraged balance sheet positions it for long-term success.
"Today marks the completion of a restructuring and recapitalization that allows the company to move forward with a solid financial foundation from which we expect to continue to strengthen our business and grow," Jeffrey M. Platt, Tidewater's president and chief executive officer, said in a statement. "We now have the financial flexibility to continue to provide our customers with the safe, compliant, and efficient services that are the hallmark of our company."
The company's new common stock has been approved for listing on the New York Stock Exchange (NYSE) under the same NYSE ticker symbol, TDW, as the shares of Tidewater's existing common stock. Trading in the new common stock on the NYSE is expected to begin on Aug. 1. The company's Series A warrants and Series B warrants have been approved for listing on the NYSE, subject to compliance with applicable NYSE listing standards. Tidewater intends to seek the listing of the equity warrants after shares of the new common stock have traded for a reasonable period of time to allow for trading prices and volume to stabilize.
Also, pursuant to the reorganization plan, Tidewater's new board of directors were appointed today: Thomas R. Bates Jr., Alan J. Carr, Randee E. Day, Dick Fagerstal, Steven L. Newman and Larry T. Rigdon. Platt will continue as a director.
