Trico Marine Files for Bankruptcy in Delaware
Introduction
On August 25, 2010, Trico Marine Services, Inc., filed petitions for bankruptcy in the United States Bankruptcy Court for the District of Delaware. According to Trico's Declaration in Support of First Day Pleadings (the "Declaration"), the company offers "sub sea services" including trenching and surveying services used in the offshore oil industry. Trico also provides towing and supply and service vessels to the offshore industry in regions such as Africa, Brazil, Asia and northern Europe. Located in Woodlands, Texas, Trico Marine Services is the parent company of 43 subsidiaries. See Declaration at pgh. 4. A copy of Trico's Petition for Bankruptcy is available here.
Events Leading to Bankruptcy
As a service provider to the oil industry, Trico's overall performance is dependent to a large degree on demand for oil and nature gas. Beginning in 2009, the oil industry began reducing expenditures on oil and natural gas projects, due in large part to the "global economic slowdown." Declaration at pgh. 27. The worsening in global economic conditions led to a drop in demand for oil, leading to less demand for Trico's support services worldwide. Lacking sufficient cash, Trico could no longer service its debts and other obligations. Id. at pgh. 28.
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