GulfMark Offshore is due to exit bankruptcy in days, the company has confirmed, after a Chapter 11 process that has taken somewhat longer than originally anticipated.
Speaking exclusively to OSJ, GulfMark’s president and chief executive officer, Quintin Kneen said the final piece of the Chapter 11 process was put in place last week. “Our bankruptcy exit confirmation date is 4 October,” he said.
Mr Kneen said one aspect of the plan that was critical to the process was confirmation that the company would have adequate liquidity for the next three years, “which we will easily have.”
Mr Kneen said the company’s noteholders “have been very supportive the whole time” but finding a banking group for the ongoing financing on reasonable terms “was more difficult than we expected.”
Mr Kneen said DNB “led a heroic effort” and was able to pull it together.
GulfMark filed in the same court on the same day, 17 May 2017, as Tidewater, another offshore vessel major in the US. Tidewater exited the Chapter 11 process much more quickly, at the end of July.
Speaking earlier, Mr Kneen said the restructuring would enhance GulfMark’s competitive position when contracting with customers and vendors, and substantially strengthen its capital structure and liquidity. “While industry conditions remain challenging, this debt reduction and rights offering will significantly enhance GulfMark’s financial position,” he said.
“Restructuring enables us to continue meeting our ongoing obligations to all customers, employees, and vendors. We are confident that this step will position GulfMark to seize opportunities as the downturn continues and in the eventual market recovery.”