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Author: Offshore logistics    Date: 9/2/2019 8:39:46 AM  +2/-0   Show Orig. Msg (this window) Or  In New Window

Undertook a self restructure without filing chapter 11. Speak to what you know, and this is not it.


Offshore Logistics was hit very hard in the oil bust. In 1984, it was forced to suspend its common and preferred stock dividends. In the next year, when its short-term debt climbed to over $71 million, the company sold its corporate office building and some aviation and marine equipment. It also cut employee salaries by ten percent and reduced paid vacations. Then, under pressure from creditors, it also restructured its principal and interest payments. In an additional move to remain viable, it transferred title to its fleet of 24 domestic supply boats and ships to the U.S. Maritime Administration in exchange for $50 million in loan guarantees. The debt service on the 24 vessels had cost the company about $14 million between 1983 and 1984, an expense that by 1985 it could no longer offset from the declining revenues produced by them. Offshore's agreement with the Maritime Administration reduced its long term debt of about $120 million to about $75 million. The company kept only its fleet of helicopters and international vessels. 


In 1986, with the company struggling to survive, Keenan resigned, swapping his interest in OLOG for the cancellation of a personal $3.6 million loan he had floated with the company in 1982. He would eventually join the firm of Chaffe & Associates, Inc., a New Orleans corporate service company. With Keenan's departure, operational control of Offshore Logistics passed to senior vice-president Clement, who took on the posts of president and COO. At the time, OLOG was still in deep trouble. In the fiscal quarter that had just been completed in March, it logged a $2.9 million loss from revenues that had dropped to $19.1 million from $26.9 million in the same quarter the previous year. 


For the remainder of the 1980s, under Clement's leadership the company continued following its strategy of selling its ships and boats and buying some of the assets of companies that were also using helicopters for offshore support services. By January 1987, the company also completed a recapitalization and debt restructuring that gave it some breathing room. By trading 31 percent of its stock, the company was able to lower its minimum annual debt service from $22 million to $8 million and free some capital for equipment purchases. Its chief acquisition was made in 1989, when it bought helicopters from a unit of Omniflight. 

 
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Chapter 11 +2/-0 Just the facts man 9/1/2019 12:14:47 AM