Harvey Gulf International Marine, the New Orleans-based LNG-fueled PSV owner and LNG bunkering pioneer, has filed for Chapter 11 bankruptcy protection in Houston.
The marine transportation company that specializes in providing offshore supply and multi-purpose support vessels for deepwater operations in the U.S. Gulf of Mexico, has listed some $1.2 billion in debt.
The action taken by the company is regarded as the sign of an oil-drilling activity slowdown and a direct result of a drop in oil prices.
The company’s court filing under Chapter 11, includes a plan to restructure the debt which would see creditors receive equity in the company once it exits the bankruptcy.
According to the filing, “the primary objective of the plan is the deleveraging of the debtors’ balance sheet through the consensual equitization of approximately 70% of the Debtors’ approximately $1.2 billion in secured debt under the credit agreement.”
The company aims ‘right-size’ the balance sheet would eliminate amortization payments and reduce interest expense by $47 million per year.
The filing lists between 200 and 999 creditors and assets with assets worth from $100 million to $500 million.
Improved cash flow would enable the company to maintain and expand its fleet that as of late includes five liquefied natural gas (LNG) fueled platform supply vessels.
The company also owns and operates, what it claims to be, the first marine LNG fueling terminal in North America at its operation base in Port Fourchon, Louisiana. The facility, with a total on-site storage of approximately 270,000 gallons contained in three tanks was opened in February 2016.