Trico Marine Services

The 2009 Annual Meeting of Trico Marine Services' shareholders is scheduled for Wednesday, June 10.

Trico set itself up for a challenge last month (May 11) when it announced a plan to trade 6.5% convertible debentures for 8.125% convertible debentures, cash, and common stock or warrants.

The largest shareholder, Kistefos, strenuously objected to the plan, which dilutes iots own holdings and those of other pre-plan shareholders and benefits the bondholders, Kistefos' statement at that time said:

"While we are still studying the details of this transaction, it appears that in an effort to remedy the adverse consequences of its over-priced and over-levered acquisitions in 2007 and 2008, the company not only has accepted an increased coupon and a significantly reduced conversion price on the new debentures while securing the debt holders, but has also chosen to substantially dilute its existing stockholders in the process when other, more affordable and less dilutive options could have been pursued."

You can see from the chart above that on the day of that announcement, the price of Trico stock fell from above $5.25 to $4.25. Since then, it has continued to decline, and at the close of the day yesterday, Tuesday, a share was worth $3.17. This has happened while broad indices have been headed upward.

Some sort of stockholder rebellion is due, surely.