Tidewater Announces Termination of Tax Benefits Preservation Plan

Rhea-AI Summary

Tidewater Inc. (NYSE: TDW) announced an acceleration in the termination of its Tax Benefits Preservation Plan to December 15, 2021, previously set to expire on April 13, 2023. The plan was established to protect the company's net operating loss carryforwards and foreign tax credits from ownership changes under the Internal Revenue Code. The Board deemed the tax attributes no longer require protection, citing a significant reduction in ownership change risks after its third anniversary of the 2018 acquisition of GulfMark Offshore, Inc.

Positive

• The acceleration of the Tax Benefits Preservation Plan termination indicates improved tax attribute health.
• The Board's decision suggests confidence in the company's ownership structure reducing risks associated with ownership changes.

Negative

• None.

HOUSTON--(BUSINESS WIRE)-- Tidewater Inc. (NYSE: TDW) (the “Company”) today announced that its Board of Directors has amended its previously adopted Tax Benefits Preservation Plan (the "Plan") to accelerate the termination of the Plan to December 15, 2021. The Plan, previously scheduled to expire on April 13, 2023, was designed to protect the Company’s existing net operating loss carryforwards and foreign tax credits, by deterring an acquisition of the Company's stock in-excess of a threshold amount that could trigger an “ownership change” within the meaning of the Internal Revenue Code.

Quintin Kneen, Tidewater’s President and Chief Executive Officer, commented, “The Plan was established in March of 2020 to protect significant tax attributes that were at risk of being limited under Section 382 of the Internal Revenue Code due to the considerable rolling three-year change in ownership percentage of the Company, which was driven in part by the issuance of shares in the November 2018 acquisition of GulfMark Offshore, Inc. Subsequent to the recent third anniversary of that transaction as well as other factors, the rolling three-year change in ownership was reduced significantly. The Board determined that the Company's tax attributes no longer need the protection of the Plan, and it is in the best interest of the Company's shareholders to promptly terminate the Plan.”

About Tidewater

Tidewater owns and operates one of the largest fleets of offshore support vessels in the industry, with more than 65 years of experience supporting offshore energy exploration, production, generation and offshore wind activities worldwide.

Forward-Looking Statements

In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Tidewater notes that certain statements set forth in this press release contain certain forward-looking statements which reflect our current view with respect to future events and future financial performance. Forward-looking statements are all statements other than statements of historical fact. All such forward-looking statements are subject to risks and uncertainties, many of which are beyond the control of the Company, and our future results of operations could differ materially from our historical results or current expectations reflected by such forward-looking statements. Investors should carefully consider the risk factors described in detail in the Company’s most recent Form 10-K, most recent Form 10-Q, and in similar sections of other filings made by the Company with the SEC from time to time. The Company’s filings can be obtained free of charge on the SEC’s website at www.sec.gov. Except to the extent required by law, the Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this press release to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any statement is based. Forward-looking statements and written and oral forward-looking statements attributable to the Company or its representatives after the date of this release are qualified in their entirety by the cautionary statements contained in this paragraph and in other reports filed by the Company with the SEC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211215006114/en/

Tidewater Inc.

West Gotcher

Vice President,

Finance and Investor Relations

+1.713.470.5285

Source: Tidewater Inc.

FAQ

What is Tidewater Inc.'s recent news regarding its Tax Benefits Preservation Plan?

Tidewater Inc. has announced the acceleration of its Tax Benefits Preservation Plan's termination to December 15, 2021.

Why did Tidewater Inc. decide to terminate the Tax Benefits Preservation Plan early?

The Board determined that the company's tax attributes no longer need the protection of the Plan due to a significant reduction in ownership change risks.

What was the original expiration date for Tidewater Inc.'s Tax Benefits Preservation Plan?

The Plan was originally set to expire on April 13, 2023.

How does the Tax Benefits Preservation Plan affect Tidewater Inc.'s financial situation?

The Plan was designed to protect the company's net operating loss carryforwards and foreign tax credits from potential ownership changes.