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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: SargeK who wrote (50721)	9/9/1999 2:14:00 PM
From: SargeK	Read Replies (2) \| Respond to of 95453

HMAR Update from their web-page hvide.com LETTER TO SHAREHOLDERS As most of you know from our published reports and accounts in the media, the Company has been under a cloud of uncertainty for the last several months as a result of deepening liquidity concerns brought about by the prolonged downturn in our offshore oilfield service business. This downturn sharply reduced revenues and income at a time when we already had a high debt load. As a result, the Company has been in noncompliance with certain of its loan covenants since the end of March. After exploring numerous alternatives, we announced today a voluntary Chapter 11 filing under the Bankruptcy Code of the United States. We also announced that we are pursuing a proposed plan of restructuring with representatives of certain major creditors. These actions are designed to allow the Company to continue its normal business operations and, at the same time, to reduce our debt, restore liquidity, and enhance our competitive position in the marketplace. We expect this process to enable us to go forward as a stronger and more competitive enterprise with a fiscally sound balance sheet. As outlined in today's announcement, the Company is in active discussions concerning a proposed restructuring plan under which (a) its general and trade creditors would be paid in full; (b) its existing credit facility would be refinanced; (c) holders of its Senior Notes would exchange their Senior Notes for common equity of the Company; and (d) holders of the Trust Convertible Preferred Securities and Common Stock would receive common equity and/or warrants to purchase common equity. Implementation of the plan is subject to numerous conditions, including the need to reach agreements with lenders and other third parties, and is expected to result in substantial dilution to the Company's current stockholders. As I noted in today's announcement, the filing helps remove the cloud of uncertainty that has hung over the Company for the last several months and gives us time to put our financial house in order. While a number of issues remain to be worked out, the general outline is in place and has the support of our major creditors. The end result will be a significant deleveraging of our balance sheet, which should in turn strengthen our operating capabilities and enable us to be a financially sound and competitive enterprise going forward. Additional details on the filing and proposed restructuring are contained in today's press release, which is available on this Web Site under “News Releases.” We will endeavor to keep you updated on our progress throughout the period of reorganization by messages such as these and through the news media. In addition, you may call our Investor Relations Department (954/524-4200, x224) or use e-mail to contact us directly. - Jean Fitzgerald Chairman, President and CEO September 9, 1999