Harvey Gulf filing for Chapter 11

The offshore vessel operator Harvey Gulf of New Orleans and Port Fourchon, La., is filing for a pre-packaged Chapter 11 bankruptcy. The firm cited the offshore market’s downturn as an underlying reason for the restructuring, which primarily consists of a debt-for-equity swap. Harvey's board and its senior lenders have voted to approve a restructuring plan to position itself for "continued long-term success." Harvey Gulf seeks to pay suppliers in full, and only senior lenders will be affected by a proposed stock swap. Their claims will be exchanged for new stock. The debts affected include three credit facilities totaling $1.2B, according to the plan. In addition, the private equity group Jordan Company will relinquish claims on Harvey Gulf's shipyard - the Gulf Coast Shipyard Group of Gulfport, Miss. Harvey Gulf described the yard as an important asset to retain for a market turnaround. In its filing, the company has assets of between $100M-to-500M, debts exceeding $1B, 500 mariners and a fleet of 60 ships, including the high-spec MPSV Harvey Sub-Sea and the LNG-fueled OSV Harvey Freedom. (Source: Maritime Executive 03/09/18)