New Orleans-based oil services company Tidewater Inc. emerged from Chapter 11 bankruptcy on Monday after completing a financial restructuring that eliminated approximately $1.6 billion of debt and will better position the company to weather the extended downturn in the offshore energy industry.
“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,” said Jeffrey M. Platt, Tidewater’s President and Chief Executive Officer. “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. Tidewater is thankful for the continued support of our many stakeholders, including our lenders, noteholders, stockholders, employees, customers, vendors and trade creditors. Their support has been integral to the successful outcome of the chapter 11 process.”
With more than 300 vessels, Tidewater has one of the biggest OSV fleets in the offshore oil and gas industry. The company and certain of its subsidiaries filed for Chapter 11 bankruptcy in Delaware in May as part of prepackaged restructuring support agreement with creditors. Tidewater has remained in business throughout the restructuring.
Through the prepacked plan, Tidewater has now eliminated approximately $1.6 billion in principal of outstanding debt and, considering the rejection of certain sale-leaseback agreements, it estimates that interest and operating lease expenses will be reduced by approximately $73 million annually. The company said the deleveraging of its balance sheet positions it for long-term success for the benefit of all stakeholders.
Shares of the company’s new common stock has been approved for listing on the New York Stock Exchange under the same NYSE ticker symbol “TDW”, and will begin trading on August 1, 2017.