Tidewater gets ‘relief’ from court
- Business & Finance
U.S. offshore support vessel owner Tidewater has received a court approval of first day motions to continue normal operations following a recent Chapter 11 bankruptcy filing.
The bankruptcy move was intended to help Tidewater pursue a prepackaged plan of reorganization in accordance with its previously announced restructuring support agreement with its lenders.
Following the bankruptcy filing, the company also filed a series of motions with the bankruptcy court to ensure a seamless transition into chapter 11 and sought the approval of the court to continue paying prepetition employee wages and salaries and to provide employee benefits without interruption.
The company informed on Friday that the United States Bankruptcy Court for the District of Delaware has granted the relief requested by the company in certain first day motions related to ordinary course business activities.
Among other things, the approved motions authorize the company to pay prepetition employee wages and benefits without interruption, maintain its insurance programs, utilize its current cash management system, and pay undisputed prepetition obligations owed to its vendors and trade creditors in the ordinary course of business.
Jeffrey M. Platt, President and Chief Executive Officer of Tidewater, said, “With the entry of these ‘first day orders’, the company will continue normal operations as we work to implement a comprehensive financial restructuring.
“I would like to thank all of our stakeholders, including our lenders, noteholders, stockholders, employees, customers, vendors, and trade creditors for working constructively with us during this challenging time.”