Torch Offshore
Client
Torch Offshore, Inc., a leading provider of sub sea construction services in connection with the in-field development of offshore oil and natural gas reservoirs. Annual revenues are approximately $70 million.
Challenge
Torch added substantial leverage as it attempted to enter a new deepwater construction market. Lower than expected operating results, and the inability to generate deepwater contracts resulted in a severe liquidity crisis that led to a bankruptcy filing in January, 2005.
Solution
Bridge was retained as the Chief Restructuring Advisor to assist the Company in its reorganization. Bridge quickly assessed the liquidity situation and determined additional financing was required. Bridge also analyzed the Company's business plan and determined due to the substantial debt level, the Company would unlikely generate sufficient cash to service the debt. As a result, Bridge is helping the Company devise an appropriate restructuring strategy.
Results
Bridge was able to assist the Company to secure $8.3 million in post-petition DIP financing and is currently assisting with the sale some or all of the assets as the Company moves towards a plan of reorganization.
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