Trico once more extends exchange, solicitation for 11 7/8% notes

By Jennifer Chiou

New York, April 6 - Trico Shipping AS announced another extension of the exchange offer for its 11 7/8% senior secured notes due 2014, this time to 5 p.m. ET on April 7 from April 5.

The deadline was previously extended to April 1 from March 30, the original end date.

The company is also soliciting consents to amend the indenture to eliminate or modify some restrictive covenants and other provisions. The solicitation's deadline will also fall on April 7.

As an alternative to the exchange offer, the company is soliciting acceptances from its noteholders of a pre-packaged plan of reorganization that it will pursue if the exchange offer is not successful and if a sufficient number of holders and amount of notes vote to accept it.

The company said that if confirmed, the pre-packaged plan would have principally the same effect as the exchange offer.

As of 5 p.m. ET on April 5, $396,454,000 principal amount, or 99.11%, of the notes had been tendered. This figure is unchanged from April 1.

The company said it again extended the exchange offer so negotiations can continue with other creditors. The exchange offer is conditioned on the agreement of these creditors.

Trico Shipping expects to supplement the disclosure statement for the solicitation of acceptances of the pre-packaged plan with certain additional information.

Restructuring plan

As previously reported, the exchange offer is part of a financial restructuring plan being pursued by Trico Shipping and fellow Trico Marine Services, Inc. subsidiary Trico Supply AS. The plan also includes a new $100 million first-priority senior secured credit facility.

The proceeds of the new facility would be used to refinance some existing debt and fund working capital borrowings.

If the plan is unsuccessful, the companies plan to file for Chapter 11 bankruptcy.

The plan has the support of the holders of about 83% of Trico Shipping's outstanding 11 7/8% notes.

The noteholders are being offered a pro rata share, together with the lenders under Trico Shipping's working capital facility, of 95% of the common stock of DeepOcean Group Holding AS, a to-be-formed Norwegian company that would be the holding company of the Trico Supply Group.

The exchange offer is subject to the receipt of tenders for at least 99% of the outstanding 11 7/8% notes and the receipt of consent from Trico Shipping's secured working capital credit facility lenders.

Additional information about the exchange offer is available to noteholders by contacting Epiq Systems Inc. (646 282-2400).

Trico Marine Services is a marine services company based in the Woodlands, Texas. It filed for bankruptcy on Aug. 25, 2010 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 10-12653. Trico Shipping is not a debtor in Trico Marine's bankruptcy case.

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