Quarterly report pursuant to Section 13 or 15(d)

Note 3 - Investments, at Equity, and Advances to 50% or Less Owned Companies

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Note 3 - Investments, at Equity, and Advances to 50% or Less Owned Companies
6 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Equity Method Investments and Joint Ventures Disclosure [Text Block]
3.
INVESTMENTS, AT EQUITY, AND ADVANCES TO
50%
OR LESS OWNED COMPANIES
 
SEACOSCO
. On
January 17, 2018,
the Company announced the formation of SEACOSCO Offshore LLC (“SEACOSCO”), a Marshall Islands entity jointly owned by the Company and affiliates of COSCO SHIPPING GROUP (“COSCO SHIPPING”).  SEACOSCO entered into contracts for the purchase of
eight
Rolls-Royce designed, new construction platform supply vessels (“PSVs”) from COSCO SHIPPING HEAVY INDUSTRY (GUANGDONG) CO., LTD (the “Shipyard”), an affiliate of COSCO SHIPPING, for approximately
$161.1
million, of which
70%
will be financed by the Shipyard, and secured by the PSVs on a non-recourse basis to the Company.  SEACOSCO took delivery of
two
vessels in the quarter ending 
March 31, 2018,
took title to another
five
 of the PSVs in the quarter ending June
30,
2018,
and expects to take title to
one
vessel in
2019.
  Thereafter, the Shipyard, at its cost, will store the PSVs at its facility for periods ranging from
six
to
18
months.  The Company's total committed investment for construction and working capital requirements is approximately
$27.5
million for an unconsolidated
50%
interest in SEACOSCO.  During the
six
months ended
June 30, 2018,
the Company contributed capital of
$25.6
million in cash. The remaining committed investment will be du
e as the remaining vessel
and equipmen
t are d
elivered as part of the
$27.5
million commitment.  The Company is responsible for full commercial, operational, and technical management of the vessels on a worldwide basis.
 
SEACOR Grant DIS.  
As of
June 30, 2018, 
the Company estimates that SEACOR Grant DIS will be unable to meet all its liabilities, and has recorded a bad debt reserve of
$0.4
million against SEACOR Grant DIS’s liability to the Company and an impairment charge of
$1.2
million to reduce its investment carrying value to
zero
.
 
Guarantees.
The Company has guaranteed certain of the outstanding charter receivables of
one
of its managed
50%
or less owned companies if a customer defaults in payment and the Company either fails to take enforcement action against the defaulting customer or fails to assign its right of recovery against the defaulting customer. As of
June 30, 2018,
the total amount guaranteed by the Company under this arrangement is
$0.5
million.
 
 In addition, as of
June 30, 2018,
two
of the Company's
50%
or less owned companies have bank debt secured by, among other things, a
first
preferred mortgage on their vessels.  The banks also have the authority to require the Company and its partners to fund uncalled capital commitments, as defined in the partnership agreements.  In such event, the Company would be required to contribute its allocable share of uncalled capital, which is
$1.2
million in the aggregate.  This liability is included in other long-term liabilities.