Tidewater Troubles


#1

Workboat article says the Tidewater lost big money last quarter. If it cannot renegotiate debt covenants regarding minimum cash flow with creditors, it MAY be forced to file for Chapter 11.


#2

[QUOTE=tugsailor;188892]Workboat article says the Tidewater lost big money last quarter. If it cannot renegotiate debt covenants regarding minimum cash flow with creditors, it MAY be forced to file for Chapter 11.[/QUOTE]

what do you expect when they borrow the entire $600+M in their revolving line of credit in the middle of the biggest industry downturn in over three decades

a “Hail Mary” move if there ever was one


#3

[QUOTE=c.captain;188897]what do you expect when they borrow the entire $600+M in their revolving line of credit in the middle of the biggest industry downturn in over three decades

a “Hail Mary” move if there ever was one[/QUOTE]

They certainly haven’t been the juggernaut they were back in the day, but have had a modest new build program. When I worked there they always said their boats were paid for when launched. So where’s the debt from?


#4

[QUOTE=Ctony;188927]They certainly haven’t been the juggernaut they were back in the day, but have had a modest new build program. When I worked there they always said their boats were paid for when launched. So where’s the debt from?[/QUOTE]

Tidewater is more international then national today. They operate a large fleet of boats in all corners of the oil patch, many of them built at yards in Europe to the highest standard. Certainly not paid for from petty cash.

I don’t know how cleaver they have been to keep their various overseas units separate to avoid all going down together, but I suspect they are well advised and cover on that aspect.

I do know that the foreign operated boats are largely separate entities in legal terms.


#5

no matter what…Tidewater is a goner!

[B]Tidewater receives limited waiver extensions from its lenders and noteholders[/B]

September 19, 2016

Tidewater, which has been in discussions with its principal lenders and noteholders to amend the company’s various debt arrangements with regard to certain covenant noncompliance, having previously received limited waivers from the necessary lenders and noteholders which waived the covenant noncompliance until 18 September 2016, has received extensions of the limited waivers of covenant noncompliance until 21 October 2016.

“Consistent with disclosures included in the company’s recently filed Form 10-Q, the company believes that the ongoing discussions with its lenders and noteholders have been constructive and progress is being made towards resolving the principal open issues,” said Tidewater. "However, work remains to be done, and no assurance is given that the various parties will reach agreement on amendments to the various loan agreements and notes

they will be the first of the “big” OSV companies to crash and burn in this downturn but will not be the last once the contagion takes hold

someone was bound to the the first to go down for the count but I expect other companies without any more cash on hand and little in the way of further borrowing ability are going to follow TDW into a pit where nobody can ever hope to escape.


#6

C Captain
investor bankers involved here, borrow a pile of cash you dont need because you can, then dont pay interest saying you cant then get into Chap 11 to the keep the wolves at bay, sounds like a smart play to me…


#7

[QUOTE=powerabout;190670]C Captain
investor bankers involved here, borrow a pile of cash you dont need because you can, then dont pay interest saying you cant then get into Chap 11 to the keep the wolves at bay, sounds like a smart play to me…[/QUOTE]

I believe you have a Master of the Art in the Properties, Hotel and Casino business.
Or even better, you don’t put your own money in, you just lend your name/brand to somebody else for a fee.
If it goes south it is not your problems. If somebody claim it is, sue them for more than they are worth.

Just remember, if the business involve some shady, or boarder line illegal deals, it must be totally deniable and/or untraceable.


#8

This from gcaptain newsletter today: https://gcaptain.com/tidewater-in-trouble/
BTW: The illustration picture is mine, taken at Loyang Base, Singapore some years back.


#9

Is it “game over” for one of the largest and oldest operators in the Marine Offshore Industry???: http://seekingalpha.com/article/4044506-tidewater-significant-dilution-means-wipeout-close-wipeout


#10

[QUOTE=ombugge;195047]Is it “game over” for one of the largest and oldest operators in the Marine Offshore Industry???: http://seekingalpha.com/article/4044506-tidewater-significant-dilution-means-wipeout-close-wipeout[/QUOTE]
T
I think somebody in tidewater is related to some large investment banker in NY because they have survived for so long and rarely make a financial mistake?


#11

Monday will be an interesting day for Tidewater.


#12

#13

Tidewater sell their most valuable asset, Troms Polaris: http://sysla.no/maritim/skulle-bli-troms-offshores-stolthet-na-er-hun-solgt/
That probably end their attempt at entering the Arctic market for now.


#14

Is the article in English anywhere


#15

Probably not, but it translate quite well using Google Translate.


#16

Tidewater to be delisted from NYSE?: http://www.offshoreenergytoday.com/another-osv-owner-at-risk-of-nyse-delisting/


#17

Chapter 11.

http://www.osjonline.com/news/view,tidewater-to-file-prepackaged-chapter-11-bankruptcy-plan_47673.htm


#18

Chapter 11 now confirmed: http://splash247.com/court-confirms-tidewater-reorganization-plan/

Will Tidewater come out of this “smelling like a rose”, or be cut into pieces and disappear from the family of Offshore Marine Companies??

Time will tell.


#19

The article says that the approved reorganization plan will allow Tidewater to eliminate $1.6 Billion in debt and " consider possible targeted acquisitions" of other weak companies in an industry that needs consolidation. Therefore, Tidewater will not only stay intact, but it also plans to grow by buying other distressed OSV companies.


#20

there ya go, suits are smarter