Grady Walker News

In a development which could be seen as a positive one for the business of building boats in the U.S., First Wave Marine, Inc. said that its Plan of Reorganization was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas. In addition, the company's current senior secured lender agreed to provide the First Wave with a post-confirmation $10 million revolving line of credit and an $8 million term loan. First Wave estimates that it will conclude its post-confirmation financing and emerge from bankruptcy on or about January 31. The new credit facility, combined with the exchange of all of First Wave's $90 million of Senior Notes for 96.7% of the common stock of the Company, dramatically improves the Company's balance sheet, financial strength and competitiveness.

First Wave Marine, Inc. announced that it has closed into a new senior credit facility with Foothill Capital Corporation. The consummation of the financing allowed First Wave to execute its Plan of Reorganization which was confirmed on January 16th and conclude its Chapter 11 case in the U.S. Bankruptcy Court for the Southern District of Texas. The new credit facility provides for a $10 million revolving line of credit and an $8 million term loan. First Wave President Grady Walker said, “With the restructuring behind us, First Wave can now focus all its energies on the business. We have the best people in the industry and world-class facilities, and with our much-improved financial structure First Wave is poised for profitable growth."

First Wave Marine, Inc. announced that its Plan of Reorganization was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas. In connection with the confirmation, First Wave announced that the company’s current senior secured lender has agreed to provide the company with a post-confirmation $10 million revolving line of credit and an $8 million term loan. The company estimates that it will conclude its post-confirmation financing and emerge from bankruptcy on or about January 31. The new credit facility, combined with the exchange of all of First Wave's $90 million of Senior Notes for 96.7 percent of the common stock of the company, dramatically improves the Company’s balance sheet, financial strength and competitiveness.

First Wave/Newpark Shipbuilding announced today that it has terminated its contract with Crest Hidayat Limited, a Malaysian company, due solely to the failure of Crest Hidayat Limited to meet its payment obligations under the contract and the failure of its parent corporation, Crest Petroleum Bhd, to fulfill its obligations as guarantor under the contract. Crest Petroleum has publicly reported the difficulty to be the result of the suspension of its credit sources. Crest has further advised the company that it is seeking to establish new funding for the project. The contract, announced by the company in June 2002, involved the repair and conversion of a semi-submersible drilling rig Teknik Hidayat, formerly known as Pan Producer, to a self-erecting tender-assist rig.

R&B Falcon Confirms U.S. Reading & Bates Development Co. (DEVCO), a wholly owned subsidiary of R&B Falcon Corporation, announced its Boomvang Project in deepwater offshore Texas is proceeding rapidly. DEVCO concurs with previously announced reserve estimates of 70-100 million boe in several oil reservoirs extending across portions of East Breaks Blocks 642, 643, 688 and 732. Platform, production facilities and pipeline contracts are being evaluated, and development drilling is scheduled to begin in the second quarter of this year. The partners anticipate first production in the first quarter of 2002. DEVCO owns a 50 percent working interest in the Boomvang Project. Kerr-McGee Oil & Gas Corp., a wholly owned subsidiary of Kerr-McGee Corp. is operator and owns a 30 percent working interest.

First Wave Marine, Inc. announced that it has filed with the U.S. Bankruptcy Court for the Southern District of Texas, a Plan of Reorganization in the Company's Chapter 11 proceeding. The filing of the Plan should pave the way for the Company's emergence from bankruptcy in early fall after requisite Bankruptcy Court approvals can be obtained. The Plan calls for an exchange of all of First Wave's 11% Senior Notes for 96.7% of the common stock of the Company which will significantly improve the balance sheet and financial strength of the Company. The Committee of Unsecured Creditors has stated that it will support the Plan. On February 5, First Wave filed for relief under Chapter 11 of Title 11 of the United States Code in the Southern District of Texas.

Newpark Shipbuilding has increased its portfolio of businesses from one to six in the past 18 months, but don't expect this Houston-Galveston region company to rest on its laurels. More growth is expected and planned. Newpark Shipbuilding was formed in the early 1990s by Sam and Frank Eakin. The Eakins, with an investment banking background, saw opportunity in the Houston-Galveston area for consolidation amidst the fragmented shipbuilding industry. The Eakin's goal was a strong shipyard network. Less than a decade later, Newpark Shipbuilding has acquired enough yards to constitute what the company refers to as a "shipbuilding network." Altogether, six facilities have been acquired in the Houston-Galveston area, employing more than 1,200 people.