Tidewater Gets More Time to Reach Debt Deal

Photo: Tidewater Inc.
Photo: Tidewater Inc.

New Orleans-based oil services company Tidewater Inc. now has until January to reach a debt deal with its creditors, further postponing or possibly avoiding altogether having to file for Chapter 11 bankruptcy.

With more than 300 vessels in its fleet, Tidewater is the leading provider of OSVs to the global energy industry.

As previously reported, Tidewater Inc. has been in discussions with its principal lenders and noteholders since at least September to amend the company‚Äôs various debt arrangements to obtain relief from certain covenants. Pending the resolution of those discussions, the company had previously received limited waivers which waived compliance with those covenants until November 11, 2016. Still unable to reach a deal however, the company has now received yet another extension until January 27, 2017.

The company previously reported that progress was being made in those negotiations, but due to the projected weak activity in offshore drilling, a key driver within the offshore service vessel (OSV) industry, more negotiations are needed.

The deadline for reaching a deal has now been extended three times – Sep. 18, Oct. 21 and now Nov. 11. 

The company has warned on several occasions that if it is unable to reach a deal on its debt, it will be forced to consider other options including a possible reorganization under Chapter 11 of the federal bankruptcy laws.

Last week Tidewater Inc. (NYSE:TDW) announced a second quarter net loss of $178.5 million, or $3.79 per common share, on revenues of $143.7 million. For the same quarter in 2015, the company posted a net loss was $43.8 million, or $0.93 per common share, on revenues of $271.9 million.

Tidewater Inc. (NYSE: TDW) shares were up 4.86% as of 2:05 p.m. Friday.