| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers T > Headlines for Trico Marine Services Inc. > News item |
Trico committee wants proof of benefits of subsidiary financing
By Caroline Salls
Pittsburgh, Sept. 16 - Trico Marine Services, Inc.'s official committee of unsecured creditors objected to the company's motion to amend credit documents to allow subsidiary Trico Shipping AS to obtain an additional $22 million in financing, arguing that there is no evidence that the proposed additional financing benefits Trico's estate, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.
The committee said the additional financing would subordinate the unsecured creditors.
"Right now, it appears that the debtors and the non-debtors are somewhat rudderless ships," the committee said in the objection.
"The debtors and non-debtors must address fully their enterprises' $150 million in 3% notes, $202.8 million in 8.125% debentures, $400 million in 11.875% notes, $6.3 million in 6.11% notes, $68 million in term loans and tens of millions of trade debt to restructure effectively."
The committee said Trico would currently be unable to pay the November coupon on its expensive 11 7/8% notes.
"There is no long-term or even short-term rational business plan in which this additional $22 million fits for the debtors before this court," the committee said.
"The debtors should not, it seems, engage in extremely short-term financing representing a decision simply to stanch too large a wound when it is time to heal it completely."
The committee said the company must prove to the court that it is acting in the best interest of its bankruptcy estates and not just in the interest of its non-debtor subsidiaries.
A hearing is scheduled for Sept. 17.
Trico, a marine services company based in the Woodlands, Texas, filed for bankruptcy on Aug. 25. The Chapter 11 case number is 10-12653.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.