Shares of Tidewater Inc. plunged 31% in premarket trade toward a record low Friday, after the oil services company said it expects to file for bankruptcy by May 17. The company has reached a restructuring deal with its lenders, which will effectively eliminate $1.6 billion in debt after the bankruptcy. Under the prepackaged bankruptcy plan, Tidewater existing shares of Tidewater common stock will be cancelled, and existing shareholders will receive common stock representing 5% of the common equity in reorganized Tidewater, Series A warrants to buy 7.5% of the equity in the reorganized Tidewater and Series B warrants to buy 7.5% of the equity. The stock traded at 61 cents ahead of the open. It has plummeted 74% year to date through Thursday, while the VanEck Vectors Oil Services ETF has shed 17% and the S&P 500 has gained 7%.
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