Trico Receives Court Approval on Settlement to Compromise Certain Intercompany Claims and Equity Interests Between Debtor Parent and Non-Debtor Operating Subsidiaries

THE WOODLANDS, Texas, Feb. 14, 2011 /PRNewswire/ -- Trico Marine Services, Inc. (Pink Sheets: TRMAQ) ("Trico Marine") today announced that the U.S. Bankruptcy Court for the District of Delaware approved the terms of a settlement agreement among Trico Marine, its subsidiaries Trico Shipping AS ("Trico Shipping") and Trico Supply AS ("Trico Supply") (collectively "OpCo") and a steering committee of note holders who collectively hold approximately 83% of the aggregate principal amount of Trico Shipping's outstanding 11 7/8% senior secured notes due 2014 (the "Notes").  

Under the settlement agreement, Trico Marine has agreed to compromise its outstanding claims against OpCo.  Trico Marine will receive 5% of the new common stock of a reorganized OpCo along with warrants to acquire an additional 10% of the new common stock, as well as other consideration.  

In conjunction with the settlement agreement, in order to implement the debt-for-equity swap, Trico Shipping expects to launch an out-of-court exchange offer and related solicitations (the "Exchange Offer") shortly for Note holders to exchange their Notes for a pro rata share of the new common stock of reorganized OpCo, and enter into arrangements with the lenders under Trico Shipping's working capital facility.  

"This settlement is a major milestone for Trico Marine," said Richard A. Bachmann, Trico Marine's Chairman of the Board of Directors, President and Chief Executive Officer.  "This clears the way for OpCo to significantly reduce its outstanding debt through an Exchange Offer, enhance liquidity and provide a strong foundation for us to continue in our overall restructuring efforts.  We are pleased to be on the right track to effect a consensual agreement with our creditors at Trico Marine and at OpCo."

This press release does not constitute an offer to purchase, or a solicitation to purchase, or an offer to sell securities in any jurisdiction.  Any such securities will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration.  Trico Shipping has not commenced the Exchange Offer or the solicitation referred to above.

Additional information about Trico's restructuring and vessel specifications are available at the Company's website, www.tricomarine.com.  For access to court documents and other general information about the Chapter 11 cases, is available at http://dm.epiq11.com/trico.

About Trico Marine Group

Trico Marine Group is an integrated provider of subsea, trenching and marine support vessels and services.  Trico's towing and supply division provides a broad range of marine support services to the oil and gas industry through use of its diversified fleet of vessels including the transportation of drilling materials, supplies and crews to drilling rigs and other offshore facilities; towing drilling rigs and equipment, and support for the construction, installation, repair and maintenance of offshore facilities.  Trico's subsea services and trenching/installation divisions control a well equipped fleet of vessels and operate a fleet of modern ROVs and trenching and other subsea protection equipment.  The Trico Marine Group is headquartered in The Woodlands, Texas and has a global presence with operations in the North Sea, West Africa, Mexico, Brazil and Southeast Asia.

For more information about Trico Marine Services, Inc. visit us on the web at www.tricomarine.com.

Forward Looking Statements

Certain statements and information in this press release may constitute "forward-looking statements."  The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature.  These forward-looking statements are based on the Company's current expectations and beliefs concerning future developments and their potential effect on the Company.  While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting the Company will be those that it anticipates.  The Company's forward-looking statements involve significant risks and uncertainties (some of which are beyond its control) and assumptions that could cause actual results to differ materially from its historical experience and its present expectations or projections.  Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: (i) the ability of Trico Supply to implement a debt-for-equity exchange; (ii) the Company's and its subsidiaries' ability to continue as a going concern; (iii) the Company's and its subsidiaries' ability to obtain court approval with respect to motions in the Company's Chapter 11 cases; (iv) the ability of the Company to confirm and consummate one or more plans of reorganization with respect to the Chapter 11 cases; (v) the ability of the Company and its subsidiaries to obtain and maintain normal terms with vendors and service providers; (vi) the Company's ability to maintain contracts that are critical to its operations; (vii) the potential adverse impact of the Chapter 11 cases on the Company's liquidity or results of operations; (viii) the ability of the Company to attract, motivate and/or retain key executives and employees; (ix) the ability of the Company to attract and retain customers; and (x) other risks and factors regarding the Company and its industry identified from time to time in the Company's reports filed with the Securities and Exchange Commission.  Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof.  The Company undertakes no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

SOURCE Trico Marine Services, Inc.