TRMA Trico Marine Services (MM)

THE WOODLANDS, Texas, Aug. 25 /PRNewswire-FirstCall/ -- Trico Marine Services, Inc. (Nasdaq: TRMA) (the "Company" or "Trico") today announced that its U.S. companies and its Cayman Islands holding company have filed voluntary petitions for relief under Chapter 11 of Title 11 of the United States Code ("U.S. Bankruptcy Code") in the United States Bankruptcy Court for the District of Delaware (the "Court").

Aside from the Cayman Islands holding company, Trico's foreign subsidiaries were not included in the filing and will not be subject to the requirements of the U.S. Bankruptcy Code.  Trico's U.S. and worldwide operations are expected to continue without interruption during the restructuring process.

Chairman of the Board of Directors, President and Chief Executive Officer, Richard A. Bachmann commented, "Over the last several months, we have worked diligently to improve our liquidity, including through the sale of $3 million of non-core assets, the sale of a North Sea class vessel for $16 million and additional cost-cutting initiatives.  While we are beginning to see indications of improved operational performance, the combination of a sluggish economy, a highly leveraged balance sheet and imminent interest payments due, has led us to determine that a court-supervised restructuring is the best course of action for the Company and its stakeholders.  While we are continuing discussions with our lenders, the Board decided to begin this process now in order to get the Company's restructuring underway without delay.  We intend to move through this process as quickly as possible.  Throughout the restructuring process, we will remain focused on operating our business worldwide while continuing our efforts to manage costs, strengthen our balance sheet and gain financial flexibility in order to position Trico as a strong and profitable competitor in our industry."

In conjunction with the filing, Trico has received a commitment for up to $35 million in debtor-in-possession (DIP) financing from Tennenbaum DIP Opportunity Fund and other funds managed by Tennenbaum Capital Partners, LLC (collectively, “Tennenbaum”), of which $10 million will represent incremental liquidity.  The Company expects that, upon Court approval and satisfaction of other customary conditions, the DIP financing, combined with cash from the Company’s ongoing operations, will provide funding to support the business.  In addition, the Company anticipates that it will meet its obligations going forward to its employees, customers and suppliers.

Separately, the Company announced that Trico Shipping AS and its affiliates have reached an agreement in principle for $22 million in senior secured multi-draw term loan financing from certain holders of its 11 7/8% Senior Secured Notes (the “Trico Shipping Notes”) representing approximately 80% of the Trico Shipping Notes and Tennenbaum.  The closing of this financing arrangement is subject to obtaining required consents, as well as certain other closing conditions of Trico Shipping AS and its affiliates.  This financing would be used to fund operating expenses and other working capital needs.

"We look forward to working together with all of our stakeholders to complete a successful financial restructuring," said Mr. Bachmann.  "Our global operations are expected to continue without interruption throughout the restructuring process, and we remain committed to providing our customers with high quality service.  We appreciate the ongoing dedication of all our employees, whose hard work is critical to our success and the future of the Company."

Trico will file a series of motions with the Court to ensure the continuation of normal operations, including requesting Court approval to continue paying employee wages and salaries and providing employee benefits without interruption and to continue use of its bank accounts and insurance policies.  The Company expects the Court to approve these requests.  During the Chapter 11 process, suppliers will be paid in full for all goods and services provided after the filing date as required by the U.S. Bankruptcy Code, and Trico has taken steps to ensure continued supply of goods and services to its customers.

Trico has established a toll-free Restructuring Information Hotline for employees, suppliers, customers, investors and other interested parties, in the United States at 1-888-369-8929 or internationally at 214-647-7656.  More information is also available on Trico's website, www.tricomarine.com, where the Company has set up a special restructuring section.  For access to Court documents and other general information about the Chapter 11 cases, please visit http://dm.epiq11.com/trico.

About Trico Marine Group

The Trico Marine Group is an integrated provider of subsea, trenching and marine support vessels and services.  Trico's towing and supply division provides a broad range of marine support services to the oil and gas industry through use of its diversified fleet of vessels including the transportation of drilling materials, supplies and crews to drilling rigs and other offshore facilities; towing drilling rigs and equipment, and support for the construction, installation, repair and maintenance of offshore facilities.  Trico's subsea services and trenching/installation divisions control a well equipped fleet of vessels and operate a fleet of modern ROVs and trenching and other subsea protection equipment. The Trico Marine Group is headquartered in The Woodlands, Texas and has a global presence with operations in the North Sea, West Africa, Mexico, Brazil and Southeast Asia.

For more information about Trico Marine Services, Inc. visit us on the web at www.tricomarine.com.

Forward Looking Statements

Certain statements and information in this press release may constitute "forward-looking statements."  The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. These forward-looking statements are based on the Company's current expectations and beliefs concerning future developments and their potential effect on the Company. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting the Company will be those that it anticipates. The Company's forward-looking statements involve significant risks and uncertainties (some of which are beyond its control) and assumptions that could cause actual results to differ materially from its historical experience and its present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: (i) the Company's and its subsidiaries' ability to continue as a going concern; (ii) the Company's and its subsidiaries' ability to obtain court approval with respect to motions in the Chapter 11 cases; (iii) the ability of the Company to confirm and consummate one or more plans of reorganization with respect to the Chapter 11 cases; (iv) the ability of the Company and its subsidiaries to obtain and maintain normal terms with vendors and service providers; (v) the Company's ability to maintain contracts that are critical to its operations; (vi) the potential adverse impact of the Chapter 11 cases on the Company's liquidity or results of operations; (vii) the ability of the Company to attract, motivate and/or retain key executives and employees; (viii) the ability of the Company to attract and retain customers; and (ix) other risks and factors regarding the Company and its industry identified from time to time in the Company's reports filed with the Securities and Exchange Commission.

Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

SOURCE Trico Marine Services, Inc.