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]||
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
eightRolls-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
$161.1million, 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
twovessels in the quarter ending
March 31, 2018,took title to another
fiveof the PSVs in the quarter ending June
2018and expects to take title to
2019.Thereafter, the Shipyard, at its cost, will store the PSVs at its facility for periods ranging from
18months. The Co
mpany owns an unconsolidated
interest in SEACOSCO. During the
September 30, 2018,
the Company contributed capital of
million in cash. The expected remaining capital commitment of approximatelyement of the vessels on a worldwide basis.
$5.3million will be due over the remainder of
2019.The Company is responsible for full commercial, operational, and technical manag
SEACOR Grant DIS.
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
$0.5million against SEACOR Grant DIS’s liability to the Company and an impairment charge of
$1.2million to reduce its investment carrying value to zero. SEACOR Grant DIS is currently in discussions to sell its
onevessel to a
thirdparty, which may provide proceeds that are available to its debt holders including the Company.
September 13, 2018,the Company sold
51%of SMLLC to MexMar Offshore (MI) LLC (“MexMar Offshore”), a wholly-owned subsidiary of MexMar, for
$8.0million in cash, which generated a gain of
$0.4million. 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 I LP (“OSV Partners”), which owns and operates
fiveoffshore 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
$27.3million, was restructured to, among other things, extend its maturity to
September 28, 2021and, in connection therewith, the Company participated in a
$5.0million preferred equity offering of OSV Partners and a subordinated loan in the amount of
ngin such preferred equity (and committing to invest an addition
alsuch preferred equity if called by the general partner of OSV Partners prior to
September 30, 2020)and providing
$2.1million of such loan. The lenders to OSV Partners have
norecourse to the Company for outstanding amounts under the facility and the Company is
notobligated to make any future investment in or loan any money to OSV Partners.
oneof 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
In addition, as of
September 30, 2018,
twoof the Company's
50%or less owned companies have bank debt secured by, among other things, a
firstpreferred 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
$1.0million in the aggregate. This liability is included in other long-term liabilities.
The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef