Troubled US offshore support vessel (OSV) operator GulfMark Offshore says it will file for Chapter 11 bankruptcy protection as part of a financial restructuring agreement (RSA).
Chapter 11 will be filed on or before Sunday (May 21), the Houston-headquartered firm said.
GulfMark will continue its operations through the Chapter 11 process.
The RSA has been reached with about 47% of holders of GulfMark’s 6.375% unsecured notes due in 2022.
It allows the company to convert outstanding senior notes to 35.65% of equity in a reorganized entity. This will wipe out around $435m of debt and $27m in interest payments.
GulfMark will also make a $125m rights offering to holders of its senior notes for an additional 60% of equity.
These measures follow continued cashflow struggles and a first quarter in which GulfMark suffered significant losses from operating activities with no short-term improvements in sight.
