EMAS… I never saw that coming!

Of course I saw the Chap 11/ restructuring event coming… what I didn’t see coming was buried in the filing where Subsea7 and Chiyoda appear to have entered into a Debtor-in-Possession credit agreement. I can only assume they want the work booked already with Chevron and in Africa.

Normally DIP (“super senior”) is provided by banks and starts the dilution process for unsecured crditors. I didn’t think this gave providers preferential rights to assets etc (other than secured for collateral). Frankly SS7 has too many ships, and I would have thought Chiyoda had had all the fun it could handle in subsea, so I will be interested to see what comes of this…

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