Trico unit to offer swap of 11 7/8% notes for operating company stock

By Caroline Salls

Pittsburgh, Feb. 14 - Trico Marine Services, Inc. received court approval of a settlement with its Trico Shipping AS and Trico Supply AS subsidiaries and a steering committee of holders of about 83% of Trico Shipping's outstanding 11 7/8% senior secured notes due 2014, according to a company news release.

Under the settlement agreement, Trico Marine has agreed to compromise its outstanding intercompany claims against its operating subsidiaries in exchange for 5% of the new common stock of a reorganized operating company and warrants to acquire an additional 10% of the new common stock.

In order to implement the debt-for-equity swap, Trico Shipping is expected to launch an out-of-court exchange offer and related solicitations for noteholders to exchange their notes for a share of the new common stock of the reorganized operating company and enter into arrangements with lenders under its working capital facility.

"This settlement is a major milestone for Trico Marine," chairman of the board, president and chief executive officer Richard A. Bachmann said in the release.

"This clears the way for OpCo to significantly reduce its outstanding debt through an exchange offer, enhance liquidity and provide a strong foundation for us to continue in our overall restructuring efforts."

Trico, a marine services company based in the Woodlands, Texas, filed for bankruptcy on Aug. 25 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 10-12653.

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