Torch Offshore agrees to sell vessels to Cal Dive for $92 million

New York, April 7 - Torch Offshore, Inc. has agreed to sell its fleet of vessels to Cal Dive International, Inc. for $92.0 million.

The price covers all equipment, inventory, intellectual property and other assets related to the operation of the vessels but excludes Torch's accounts receivable, overhead assets unrelated to the operation of the vessels, and claims owned by Torch's bankruptcy estate.

Torch has asked the U.S. Bankruptcy Court for the Eastern District of Louisiana to hold an auction with Cal Dive as the stalking horse bidder.

If Cal Dive wins, closing is expected in the second quarter.

Cal Dive is a Houston-based energy service company.

Torch Offshore also said it amended its debtor-in-possession credit facility to increase the revolver to $8.3 million from $6.9 million and extend the expiration to April 29 from April 1.

Torch's DIP facility also includes a $2 million bonding facility. Banks for the loan are Regions Bank and Export Development Canada.

The interest rate is Regions' base rate plus 400 basis points.

Torch filed for reorganization under Chapter 11 on Jan. 7. The New Orleans-based offshore pipeline installation and subsea construction company's case number is 05-10137.

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