Offshore Marine Contractors gets interim access to $2 million loan

By Caroline Salls

Pittsburgh, Dec. 17 – Offshore Marine Contractors, Inc. obtained court approval to access $2 million in debtor-in-possession financing from Mississippi River Bank on an interim basis, according to an order filed Monday with the U.S. Bankruptcy Court for the Eastern District of Louisiana.

The final hearing is scheduled for June 3.

The DIP facility will have a draw limit of 80% of eligible debtor accounts receivable.

Interest will accrue at the Index rate plus 475 basis points.

Principal and interest must be paid by June 2, 2021, subject to a rate adjustment and payment of a 1% annual origination fee on June 2, 2020.

The company said in the financing motion that it is unable to obtain alternative financing “as it is significantly over-leveraged and lacking in the cash flow to amortize such a loan.”

Cutoff, La.-based Offshore Marine provides offshore, self-propelled, self-elevating liftboats for the petroleum exploration and transportation industries. The company filed bankruptcy on Dec. 4 under Chapter 11 case number 19-13253.

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