Business
Implications of Seafox's actions
Implications of Seafox's actions.
About this update from Gulf Marine Services Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 4900B\n Gulf Marine Services PLC\n 08 October 2020\n \n \n \n \n NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n FOR IMMEDIATE RELEASE\n \n \n \n \n \n \n \n 8 October 2020\n \n \n \n \n \n \n \n \n Gulf Marine Services PLC\n \n \n (\"GMS\" or the \"Company\")\n \n \n Implications of Seafox's actions on the Company's planned equity raise\n \n \n Shareholder meeting to approve issue of warrants\n \n \n Further to recent announcements that:\n \n · \n Seafox International Limited (\"Seafox\") has requisitioned a general meeting to remove a\n ll of the non-executive directors of the Board and replace them with its nominees;\n \n \n · \n the two Seafox directors appointed at the general meeting requisitioned by Seafox on 4 August 2020 have resigned; and\n \n \n · \n Seafox has requisitioned a further general meeting to re-appoint one of those Seafox directors to the Board,\n \n the Board of GMS is today providing an update on the implications of Seafox's actions on the planned equity raise.\n Background\n On 31 March 2020, the Company announced that it had reached agreement in principle with its consortium of lending banks (the \"Lenders\") on a new debt structure. The Board confirmed that it intended to seek shareholder approval to undertake a share capital increase before the end of 2020, with the aim of raising at least $75 million of net proceeds (the \"Equity Raise\").\n \n On 9 June 2020, the Company entered into revised term debt facilities with its Lenders which provided GMS with access to working capital facilities, reprofiled debt repayments (including an extended final maturity date), and revised covenant tests to more sustainable levels (the \"Debt Restructuring\").\n \n \n The Debt Restructuring provides a platform for the future success of the Company by giving the management team the time to fully implement its turnaround plan, including the delivery of lower operating costs and higher utilisation, through improved efficiencies, safe and reliable operations, and building strong customer and stakeholder relationships. \n \n \n The terms of ...