New Orleans - July 31, 2017
Tidewater Inc. (NYSE: TDW) ("Tidewater" or the "Company") announced that effective today the Company and its affiliated chapter 11 debtors have emerged from bankruptcy after successfully completing its reorganization pursuant to the Second Amended Joint Prepackaged Chapter 11 Plan of Reorganization of Tidewater and its Affiliated Debtors (the "Plan"), that was confirmed on July 17, 2017 by the United States Bankruptcy Court for the District of Delaware. Capitalized terms used but not defined below have the meanings ascribed to them in the Plan, which was filed as Exhibit 2.1 to the Company's Current Report on Form 8-K filed on July 18, 2017.
Through its Plan, Tidewater eliminated approximately $1.6 billion in principal of outstanding debt, and considering the rejection of certain sale-leaseback agreements, Tidewater estimates that interest and operating lease expenses will be reduced by approximately $73 million annually. The Company believes that its substantially deleveraged balance sheet positions it for long-term success for the benefit of all of its stakeholders. The company was principally advised by Lazard, Weil Gotschal & Manges LLP and Jones Walker LLP.
"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."
The Company's new common stock (CUSIP number 88642R 109) (the "New Common Stock") has been approved for listing on the New York Stock Exchange (the "NYSE") under the same NYSE ticker symbol "TDW" as the shares of the Company's existing common stock (CUSIP number 886423 102) (the "Existing Stock"). Trading in the New Common Stock on the NYSE is expected to commence on Tuesday, August 1, 2017. The Company's Series A Warrants and Series B Warrants (CUSIP numbers 88642R 117 and 88642R 125, respectively) (together, the "Equity Warrants") have been approved for listing on the NYSE, subject to compliance with applicable NYSE listing standards. The Company intends to seek the listing of the Equity Warrants after shares of the New Common Stock have traded for a reasonable period of time to allow for trading prices and volume to stabilize.
Pursuant to the Plan, following today, the Company will explore listing the New Creditor Warrants on an exchange, subject to approval by its board of directors and applicable listing requirements.
Preliminary information regarding the allocation of cash, senior secured notes, New Common Stock, and New Creditor Warrants among the banks, noteholders and sale/leaseback parties, and the allocation of New Common Stock, Series A Warrants, and Series B Warrants among its prior common stockholders was disclosed in the Company's press release dated July 27, 2017. The Company will file a Current Report on Form 8-K today that sets forth the final allocations which are consistent in all material respects with those previously disclosed.
Board of Directors
Pursuant to the Plan, the Company's new board of directors, consisting of the following persons, was appointed today: Thomas R. Bates, Jr., Alan J. Carr, Randee E. Day, Dick Fagerstal, Steven L. Newman, and Larry T. Rigdon, with Jeffrey M. Platt, the Company's President and Chief Executive Officer, continuing as a director.
Tidewater Inc. press release