Oceanteam to miss interest payments, plans financial restructuring

Norwegian offshore services provider Oceanteam ASA (OSL:OTS) will not be able to make the interest payments on its senior unsecured bond due on October 24, 2016, it said on Sunday.

The announcement comes just a couple of days after Oceanteam said it is initiating constructive dialogue with its stakeholders and banking group in an attempt to shape a restructuring plan and ultimately improve its financial flexibility. At the time, the company pointed out that it is facing serious financial restraints by its current capital cost and structure, and that it needs financial flexibility to further advance the business and deal with the market circumstances.

“The deferral of the company’s interest payments is the immediate result of our short term cash position that has been depleted by reduced rates and costs related to the recent extensions of vessel contracts of CSV Bourbon Oceanteam 101 and CSV Southern Ocean and SPS for CSV Bourbon Oceanteam 101,” CFO Wilhelm Bohn said in a statement on Sunday.

The company, which serves both the oil and gas and renewables industries, noted that it is currently reviewing all alternatives available given the current market conditions.

Choose your newsletter by Renewables Now. Join for free!