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Story time folks - another example of O&G executives misbehaving and (dumb?) creditors playing ball....
This time it is Hornbeck Offshore (led by Todd Hornbeck). Founded in 1980 by Hornbeck Sr as an offshore marine services company (think boats to support offshore rigs). Had some success with the business (merged with Tidewater) then Jr. (Todd) came along and spent billions
to build a shiny new fleet. Leverage was no stranger to Todd and he was able to borrow billions at pretty low rates. Fast forward to mid 2010s and offshore cycle had turned and business was not doing too well...
instead of restructuring cleanly like its peers, Company decided to put creditors in a cage match and tried all shady tactics to float this turd (coercive exchanges etc etc)... that lasted FIVE long years and the one-two punch of COVID and crude finally brought Hornbeck
to the bankrupcty show.... let bygones be bygones, one would think creditors would have learned their lesson and finally booted out this management team who has acted nefariously, right?
How about NO. creditors who lost their shirt (recovery on their debt of 0.5 cents)...
How about NO. creditors who lost their shirt (recovery on their debt of 0.5 cents)...
are 1) providing MORE money to this Company, 2) keeping the management team with fat salaries, 3) giving 11% of the new company to management for their hard work and this is the kicker 4) paying Hornbeck Jr at least $1 million per year cash to license the LOGO!!! (WTF)??
