(NEW ORLEANS) — A federal bankruptcy judge has approved a bankruptcy reorganization plan for Harvey Gulf International Marine, the New Orleans Advocate reported.
Shane Guidry, chief executive officer for Harvey Gulf, noted that the plan was approved 77 days after Harvey Gulf filed for Chapter 11 bankruptcy protection. At the time of the filing, Harvey Gulf had about $1.2 billion in debt.
“We really appreciate the diligent and collaborative efforts of all involved in this process — both within the company and from the legal and financial support teams,” Guidry said in a prepared statement.
The reorganization plan, which Harvey Gulf submitted with its Chapter 11 filing in March, involves a debt for equity swap. There will be no changes in operations, personnel or safety, Guidry said.
In connection with the reorganization, Harvey Gulf has reached long-term charter deals with Hess for three platform supply vessels (PSVs), each more than 300 feet long. Those ships will take the place of vessels previously operated by Aries Marine that were acquired by Hornbeck Offshore.
Guidry blamed the bankruptcy filing on the global slowdown in drilling activity, brought on by a sustained run of low oil prices. He has predicted the drilling market will begin to turn around by 2020 and expects Harvey Gulf will be positioned to take advantage of it.
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