Trico Marine: Arrowgrass objects to sale of vessels, eyes bid process

By Lisa Kerner

Charlotte, N.C., Oct. 26 - Trico Marine Services, Inc. 3% senior convertible debentures holders Arrowgrass Master Fund Ltd. and Arrowgrass Distressed Opportunities Ltd. filed an objection to the company's request for approval of the $26 million sale of its Trico Moon and Trico Mystic vessels to Tidewater, Inc., according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

A hearing is set for Nov. 4.

The debtors received a letter of intent from GulfMark Offshore, Inc. on Oct. 22 to acquire the vessels for $27.5 million, the filing said.

Arrowgrass wants the court to deny approval of the sale motion and require an open bidding process take place for the assets.

As previously reported, the sale of Trico Moon and Trico Mystic is contingent on the sale by non-debtor affiliate Trico Subsea Holding AS of the Trico Sabre and Trico Star vessels to Tidewater for $25 million each for a total of $50 million. This sale does not require court approval.

Tidewater has agreed to pay a deposit of 5% of the purchase price of each vessel provided the sellers provide adequate security.

The sale agreements are expected to be finalized by Oct. 21 and the vessels must be delivered between Nov. 1 and Nov. 15, a prior court filing said.

Trico, a marine services company based in the Woodlands, Texas, filed for bankruptcy on Aug. 25. The Chapter 11 case number is 10-12653.

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