Norwegian offshore drilling company Dolphin Drilling ASA (DDASA) has dismissed all of its management employees, including its CEO and CFO, amid restructuring efforts.
As reported in April, the majority lenders under the company’s $2 billion secured credit facility entered into an agreement for the reorganization and recapitalization of the drilling business of the company.
The recapitalization of the drilling business included the sale of the Bolette Dolphin drillship to refocus the group’s drilling business on its mid-water fleet while the mid-water drilling business of the group was agreed to be transferred to a new holding company, controlled by the secured lenders.
As contemplated by Dolphin Drilling’s secured lenders, the Drilling Restructuring will not include the management of DDASA.
All of DDASA’s key management is employed by Dolphin Drilling Management. On this basis, Dolphin Drilling Management on Tuesday gave notice of termination to all of its employees, including DDASA’s CEO Ivar Brandvold and CFO Hjalmar Krogseth Moe.
The company said that the termination will take effect following the expiry of the employees’ notice period, which for most employees is three months. The notice period for the CEO and CFO is six months.
New CEO setting up new management
The company said that operations of the drilling business of the group are expected to continue uninterrupted. The secured lenders have informed DDASA that the new CEO of the drilling business will be Bjørnar Iversen and that he is in the process of establishing a new management group. Iversen has previously served as the CEO of Songa Offshore, a drilling company eventually bought by Transocean.
The board of DDASA continues to monitor the company’s position and ongoing restructuring efforts. The company is not expected to hold notable value even following a consensual completion of the Drilling Restructuring. In contrast, the company’s financial obligations will remain notable. Absent a voluntary composition of such obligations, the company will be obligated to file for bankruptcy.
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