Cal Dive International Inc. (OTC: CDVI) is continuing to work with potential capital providers to refinance its first lien credit agreement. As previously disclosed, the company executed an amendment to its first lien credit agreement, which maintained the size of the revolving credit facility at $100 million, and waived the company’s noncompliance with certain financial covenants and payment obligations under the credit agreement, as well as the cross defaults resulting from similar defaults under the company’s second lien credit facility, through Dec. 1.
As amended, the revolving credit facility capacity will step-down from $100 million to $90 million on Dec. 2, and the company will be in payment default under the first lien credit agreement upon such step-down.
Cal Dive is working cooperatively with the lenders under its first lien credit facility on a forbearance of such default, and is also working cooperatively with the lenders under its second lien credit facility and the holders of its convertible notes, as well as its suppliers and vendors. The company continues to pursue financing transactions, non-core asset sales, and other strategic efforts to provide the company with additional liquidity and allow for the repayment, restructuring or refinancing of the company’s first lien revolving credit facility, and other funded debt.
While Cal Dive remains hopeful that these efforts will be successful, there can be no assurance that an agreement on such a transaction will be reached quickly. If an agreement cannot be reached in a timely fashion, the company will have to consider other, potentially less satisfactory measures to provide liquidity for its operations.