Harvey Gulf Emerges From Chapter 11 Ready To Expand
Harvey Gulf International Marine announced July 2 that it has completed its financial restructuring and emerged from Chapter 11 bankruptcy proceedings, having shed a billion dollars in debt with the help of a private equity firm, Jordan Partners, that has worked with Harvey Gulf for 10 years and that now has a “significant” stake in the company.
The announcement marked the completion of the reorganization plan approved by the bankruptcy court, just 77 days following Harvey Gulf’s prepackaged filing. The company emerged from the reorganization with what it called a “dramatically de-leveraged balance sheet.” The company said it had kept its commitments to its trade vendors, paying all unsecured claims in full.
The company said it had reached an agreement with Shane Guidry, Harvey Gulf’s chairman and CEO, to extend his employment contract for an additional five years from the date of emergence. “Guidry’s leadership of Harvey Gulf through the most significant downturn in the offshore services industry in more than 30 years has been exemplary, producing 58 percent average EBITDA margins over the past three years, peaking at 61 percent,” the company said in a press release. The retention of Guidry’s services and the rest of his team was a “key tenet of the restructuring transactions.”
Guidry was upbeat about the company’s future, saying, “The Chapter 11 restructuring process is extremely complicated, and the fact that Harvey Gulf emerged so quickly, while shedding a billion dollars of debt and adding over 40 new customers, reflects the dedication, hard work and tenacity of the entire Harvey Gulf team.”
Guidry thanked his legal team, adding, “Lastly, I’d like to thank The Jordan Company, which has been a tremendous partner for us over the last 10 years and supportive of this company through any and all challenges. We are glad that The Jordan Company will maintain a significant stake in the company going forward.”