GulfMark extends forbearance on 6 3/8% notes and loan waiver via RBS

By Susanna Moon

Chicago, May 1 – GulfMark Offshore, Inc. amended its forbearance agreement on April 28 for its 6 3/8% senior notes due 2022 to extend the forbearance until 11:59 p.m. ET on May 12, according to an 8-K filing with the Securities and Exchange Commission.

As reported, GulfMark obtained a forbearance agreement on April 14 from holders of more than half of its 6 3/8% senior notes due 2022 and a waiver extension with Royal Bank of Scotland plc.

Under the notes forbearance, holders agreed to refrain from enforcing or otherwise taking action as a result of the company’s failure to pay interest due March 15.

Before the extension, the forbearance had been set to end April 28.

GulfMark also inked a support agreement with RBS as agent for a multicurrency facility agreement dated Sept. 26, 2014.

Under the loan agreement, the agent agreed to waive the defaults and events of default and to forbear from exercising any rights or remedies under the facility as a result of any defaults until May 12, extended from April 28 and before that April 14.

On Friday, the company entered into a support agreement for a NOK 600 million secured revolving credit facility agreement dated Dec. 27, 2012 with DNB Bank ASA.

Under the terms, DNB agreed to abstain from exercising any rights or remedies under the facility as a result of defaults until April 28.

As reported, GulfMark decided to forgo paying the $13.7 million interest payment due March 15 and entered into a 30-day grace period to make the payment.

The failure to pay interest constituted an event of default under the notes indenture and, if not cured within 30 days, would result in a cross-default under the senior secured revolving multicurrency credit facility with Royal Bank of Scotland as agent and DNB Bank as lead arranger and lender.

The company said it “is continuing to engage in negotiations and discussions with holders of the company’s indebtedness regarding the terms of a financial restructuring. There can be no assurance, however, that the company will be able to negotiate acceptable terms of a restructuring with its creditors or reach any agreement with respect to such a restructuring.”

Houston-based GulfMark Offshore provides marine transportation services to the energy industry.

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