Restructuring of the OSV business is far from finished


#141

Here is an article in English:
https://subseaworldnews.com/2018/08/23/new-zealand-navy-to-get-new-dive-and-hydrographic-vessel/


#142

hows the TDW Gulfmark merger going?


#143

You mean the Harvey Gulf / Gulfmark merger?


#144

yes and no, which one is happening?
I cant believe TDW would announce it without a sealed deal unless they found out something and need to to go away?


#145

I think everything is on hold until the next Gulfmark stockholders meeting, they have to vote on which company to go with. Gulfmarks Board want to go with Tidewater, but Harvey’s offer on paper is worth more. Neither one is a cash offer, it’s all based on stock.


#146

They both have debt so my guess is the banks want TDW to do the deal, whoever controls the banks owns the deal?


#147

Every company has debt. Banks only have a say so if they have shares, and then really only if they have enough to shares to be heard. That said there might be some SEC regulations about how much a bank can own of a company and loan them money. If not it would be considered risky to do both because if the company goes bankrupt, you lose on two fronts not just one.

It’s up to Gulfmark’s Stock holders. 68% of Gulfmark’s shares are held by Institutions, and those are the ones that will ultimately decide GulfMark’s fate.

Pretty Pie Charts showing Gulfmark’s majority owners.
https://www.nasdaq.com/symbol/glf/ownership-summary


#148

Bondholders have more say than shareholders, shareholders get the crumbs after the bondholders pick the carcass clean… Find who holds the bonds and you’ll find the power in any reorg.


#149

My understanding is that as long as the bond covanets are upheld there is very little say so that bond holders have in the operation of the company. Hence the reason you have Gulfmark waiting till a stock holders meeting to decide which way to go.

Of course during a bankruptcy bond holders are first in line to collect, often leaving nothing behind for stock holders. Been through this a few times.


#150

Gulfmark did go bankrupt. The shareholders got wiped out. The bond holders became the new shareholders, along with a few managers.

Same with Tidewater.

I cannot remember, but didn’t Harvey restructure as well?

Basically, all of these companies are now owned by the original bond holders which had to accept stock as partial payouts on their bonds, but the managers got small stakes in the restructured companies too.

From the institutional bond holders , now the new stockholders, perspective, it makes sense to merge these companies and cut costs by consolidating the management (firing a lot of people) and gaining operational economies of scale and efficiencies.

A Tidewater/Harvey/Gulfmark combination, with Tidewater as the surviving company and Tidewater’s management, makes a lot of sense.


#151

Harvey was a debt for equity swap. But with Shane and the Jordan group being the owners. Maybe one or two others with VERY minor shares. Now the banks own 98%, Shane has like 2% and nothing left for the Jordan group. Although they did get the shipyard in gulfport.

Shans ego will not let a merger happen unless hes the one left in charge with all the boats being painted blue. That said hes not the majority owner any more so who knows what will happen.

I’m honestly surprised Seacor hasnt made some type of offer. It’s exactly the type of asset they like, cheap quality assets ready to go to work. Of course it would be a straight buy out and none of this merger nonsense.


#152

They are all debt for equity swaps. The bond holders were forced to convert most of their bonds (debt) into equity (stock). The only alternative would have been liquidation (outright sale of the company assets).

Mergers for new equity are tax free events. Outright sales are taxable events (although bankruptcy court ordered sales are usually tax exempt).

A merger is a just a fancy word for sale, although it often has negotiated conditions favorable to management of the company being bought. Mergers can be stock swaps or cash purchases, or bond issuances, or some combination.

I have been alarmed for 10 years about the increasing amount of consolidation (they like to call it rationalization) of boat operating companies.

One of the good things about marine employment has been the large number of opportunities at a wide variety of smaller companies with different styles of operating. Big companies like TOTE, Kirby, Crowley, and others have been buying up too many small companies for quite a while. Crowley has reinvented itself as a major manager of both US and foreign flag ships, and a ship owner operator while nearly exiting the tugboat business. ECO, Hornbeck, Seacor, Harvey, Tidewater, and a couple others own most of the oil patch work.

Owners are getting far too much power over mariners and turning going to sea into lower wage, less pleasant, dictatorial sweatshops. A lot of shoreside jobs are now more attractive.


#153

in TDW 3rd q earnings report is reads like they are still moving forward with it?


#154

SolstadFarstad is no more. From today it is Solstad Offshore ASA:


#155

More consolidation in the OSV market:
https://splash247.com/horizon-maritime-to-acquire-nordic-american-offshore/


#156

Rig consolidation:

https://www.offshore-mag.com/articles/2018/10/ensco-rowan-to-merge.html?cmpid=enl_offshore_offshore_daily_newsletter_2018-10-09&pwhid=9f51f93886336638cdc4e04ff6ff54caf5fcd03f2b31fb1389428d77bdb8bd74e64bdffd8ea8eb36fab9de5b8e33e6bceb7958e52bdf371f01e208f103156c63&eid=288199580&bid=2263603


#157

did it do anything to the share price?
I think investing in mining and batteries will do better


#158

Worldwide offshore rig count is up as well:
https://www.offshoreenergytoday.com/worldwide-offshore-rig-count-for-september-rises/


#159

Another restructuring happening now is the shearing of ideas, equipment and vessel across different industries, like offshore wind and oil & gas, or even offshore fish farming:
https://www.osjonline.com/news/view,shared-innovation-benefits-renewables-oil-and-gas_54479.htm
There are also other examples, like using offshore technology in bridge building etc.


#160

At least things are improving, if slowly, for the OSV market: