Quarterly report pursuant to Section 13 or 15(d)

Commitment and Contingencies

v3.19.1
Commitment and Contingencies
3 Months Ended
Mar. 31, 2019
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

 

 

 

12.

COMMITMENTS AND CONTINGENCIES

As of March 31, 2019, the Company’s unfunded capital commitments were $85.7 million for one FSV, two supply vessels, three crew transfer vessels (“CTV”) and three PSVs. Of the amount of unfunded capital commitments, $54.0 million is payable during the remainder of 2019 and $31.7 million is payable during 2020.  The Company has indefinitely deferred an additional $20.2 million of orders with respect to two FSVs for which the Company had previously reported unfunded capital commitments.  

As of March 31, 2019, the Company has guaranteed certain performance contracts of one of its subsidiaries by setting aside £0.9 million from its available borrowing under an unsecured line of credit. If the contract were not fulfilled, the line of credit would be drawn to fund the guarantee.

As of March 31, 2019, SEACOR Holdings Inc. (“SEACOR Holdings”) has guaranteed $36.6 million on behalf of the Company for various obligations including: performance obligations under sale-leaseback arrangements and invoiced amounts for funding deficits under the U.K. Merchant Navy Officers Pension Fund (“MNOPF”). Pursuant to a Distribution Agreement with SEACOR Holdings, SEACOR Holdings charges the Company a fee of 0.5% on outstanding guaranteed amounts, which declines as the obligations are settled by the Company.

In the normal course of its business, the Company becomes involved in various other litigation matters including, among other things, claims by third parties for alleged property damages and personal injuries. Management has used estimates in determining the Company’s potential exposure to these matters and has recorded reserves in its financial statements related thereto where appropriate. It is possible that a change in the Company’s estimates of that exposure could occur, but the Company does not expect such changes in estimated costs would have a material effect on the Company’s consolidated financial position, results of operations or cash flows.