Trico Marine Services Inc.

Trico Marine Services Inc. is a now-defunct oil company that filed for bankruptcy and spun off some of its subsidiaries to other companies in 2011. Trico shifted its focus many times, which may have been why it ultimately failed. Those in charge, however, blamed the downturn in the global economy for the company’s woes.

Trico’s History

Founded in Delaware in 1993, Trico Marine Services ultimately shifted headquarters to The Woodlands, Texas. The first line of business in which the company engaged was towing and supply. However, the company acquired other smaller businesses over the years and added to its services.

• In 2007 and 2008, the company purchased Active Subsea and DeepOcean. This added to the services Trico could offer, including underwater inspections, maintenance, and repair.
• Trico first faced Chapter 11 bankruptcy in 2005.
• In March of that year, the company announced that it had successfully emerged from bankruptcy restructured and intact.
• The bankruptcy and restructuring allowed the company to eliminate significant debt and hold on to important borrowing capacity. It also emerged with a new stock symbol and a new board of directors.
• By 2009 the company had close to 2,000 employees throughout the world, including around 1,320 workers directly engaged in operations.
• Unfortunately, around the same time, the company was in trouble again.
• Trico failed to pay any cash dividends on stocks in either 2008 or 2009, and by 2010 it began to be evident that the company would need to enter into bankruptcy again.
• They filed Chapter 11 again in 2011, but the company would not emerge unscathed this time. Liquidated and out of business, Trico was over, and many people lost their maritime jobs.

Trico’s Services in the Maritime Industry

While Trico was still in operation, the company was engaged in several different services and had a large fleet of vessels and equipment.

Although the company began as a supply and towing service, it expanded over the years into subsea work and many services to support the offshore oil and gas industry.

Trico company operated as three subsidiaries:

• DeepOcean provided subsea services. Subsea services include anything that must be done underwater, and Trico focused on the needs of the gas and oil industry. This means using divers, submersibles, and other equipment to install, maintain, and repair the equipment on oil wells and gas and oil platforms. Subsea services may also include inspecting structures and equipment, engineering, drilling, and completing and maintaining wells underwater. Subsea services can be done in shallow or deep water environments.

• Trico Offshore was the original towing and supply company. This part of the company was primarily responsible for supplying platforms and other offshore structures with needed equipment. This could include drilling materials, drilling rigs, and personnel going to and leaving platforms for work periods. Trico Offshore also provided towing services, mainly for drilling rigs to and from drilling sites.

• CTC Marine provided subsea trenching and protection. CTC Marine provided services to both the gas and oil industry and telecommunication companies. These services largely included burying transmission systems on the ocean floor. This could consist of flow lines, pipelines, and cables for telecommunications. The subsidiary also installed certain types of subsea infrastructure like integrated service umbilicals.

When Trico was at its peak, it had a fleet of ten platform supply ships with large capacity, 41 other supply vessels, a line handling vessel, six crew boats, and six large towing vessels.

There were thousands of employees, and the company operated in the U.S., the United Kingdom, Norway, the North Sea, and the waters of Australia, Brazil, West Africa, Mexico, and Southeast Asia.

Trico’s 2011 Bankruptcy

The 2011 bankruptcy ended Trico Marine Services as it was previously known. DeepOcean with CTC Marine survived as a separate company, headquartered in Amsterdam, The Netherlands, as a new company, using Trico’s decommissioned services.

The rest of the company, namely the original towing and supply arm and the Trico name, did not survive.

Driving factors in the bankruptcy were growing debt and a loss of almost all stock value. Trico was traded publicly on the NASDAQ, but the company could not pay cash dividends on common stock for two years.

When the company filed Chapter 11, it had to liquidate its assets to pay off debt but could only pay creditors $.06 on the dollar.

The directors of Trico have been accused of wrongdoing, and the creditors have recourse to sue for the rest of what they are owed.

Trico’s Workers

Creditors and shareholders were not the only ones to lose when Trico failed. Nearly 2,000 people were laid off and on the market for new jobs.

Additionally, anyone hurt on the job for Trico suddenly had a more challenging time seeking compensation for those injuries.

Maritime laws protect maritime workers and platform workers on offshore sites, but when a company files for bankruptcy, it may be unable to pay what it owes.

If you worked for Trico, were injured on the job, and could not recover the damages you were owed, you may want to speak to a maritime lawyer.

Trico may have had insurance money left that could have paid out to injured workers. Let a lawyer hear your case and decide if you have options and if you may be able to get any money for your pain and suffering.