GulfMark Offshore to file for Chapter 11

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.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.
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