Hvide Marine Files Reorganization Plan

Hvide Marine Incorporated has filed a proposed Plan of Reorganization, which - if confirmed - would deleverage its balance sheet, restore liquidity, and enhance the company's competitive position in the marketplace. The plan results from discussions with the Official Committee of Unsecured Creditors appointed in Hvide's Chapter 11 case, including representatives of the holders of approximately 63 percent of Hvide Marine's $300 million of 8.375 percent Senior Notes and nearly 50 percent of its outstanding Trust Convertible Preferred Securities. Under the plan, holders of the company's 8.375 percent Senior Notes would exchange their Senior Notes for 9,800,000 shares of common stock of the reorganized Hvide Marine, representing 98 percent of the new common equity; holders of the Trust Convertible Preferred Securities would receive 200,000 shares of common stock of the reorganized Hvide Marine, representing 2 percent of the new common equity, together with warrants to purchase an additional 125,000 shares; and holders of the Common Stock would receive warrants to purchase 125,000 shares of the common stock of the reorganized Hvide Marine. The warrants would be exercisable at $38.49 per share and would have a term of four years. "The filing of our Plan of Reorganization represents an important step forward," commented Jean Fitzgerald, chairman, president and CEO. "It will convert approximately $433 million of debt to equity, thereby reducing our liabilities by more than half and enabling us to go forward as a financially viable enterprise with a manageable debt load. It also represents an important vote of confidence on the part of our major creditors, whose support has enabled us to pursue this reorganization." The company estimates it will complete its restructuring and emerge from Chapter 11 in late 1999 or early 2000.