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
9 Months Ended
Sep. 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 Co
mpany owns an unconsolidated
50%
interest in SEACOSCO.  During the
nine
months ended
September 30, 2018,
the Company contributed capital of
$27.0
million in cash. The expected remaining capital commitment of approximately
$5.3
million will be due over the remainder of
2018
and the
first
half of
2019.
The Company is responsible for full commercial, operational, and technical manag
ement of the vessels on a worldwide basis.
 
SEACOR Grant DIS.  
As
of
September 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
$0.5
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. SEACOR Grant DIS is currently in discussions to sell its
one
vessel to a
third
party, which may provide proceeds that are available to its debt holders including the Company.
 
SEACOR Marlin.
 
The Company created a new subsidiary, SEACOR Marlin LLC (“SMLLC”) and contributed the Seacor Marlin supply vessel into SMLLC. On
September 13, 2018,
the Company sold
51%
of SMLLC to MexMar Offshore (MI) LLC (“MexMar Offshore”), a wholly-owned subsidiary of MexMar, for
$8.0
million in cash, which generated a gain of
$0.4
million. The Seacor Marlin supply vessel was pledged as collateral under the MexMar credit facility, for which the Company receives an annual collateral fee. SMLLC is a
50%
or less owned company and will be accounted for using the equity method of accounting.
 
OSV Partners.
SEACOR
OSV Partners I LP (“OSV Partners”), which owns and operates
five
offshore support vessels, had been in non-compliance with certain financial covenants under its term loan facility. On
September 28, 2018,
such facility, in the principal amount outstanding of
$27.3
million, was restructured to, among other things, extend its maturity to
September 28, 2021
and, in connection therewith, the Company participated in a
$5.0
million preferred equity offering of OSV Partners and a subordinated loan in the amount of
$5.0
million, investi
ng
$1.1
million
in such preferred equity (and committing to invest an addition
al
$1.1
million in
such preferred equity if called by the general partner of OSV Partners prior to
September 30, 2020)
and providing
$2.1
million of such loan.  The lenders to OSV Partners have
no
recourse to the Company for outstanding amounts under the facility and the Company is
not
obligated to make any future investment in or loan any money to OSV Partners.
 
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
September 30, 2018,
the total amount guaranteed by the Company under this arrangement is
$0.5
million.
 
 In addition, as of 
September 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 the Company's 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 was, as of September
30,
2018,
$1.0
million in the aggregate.  This liability is included in other long-term liabilities.