Dolphin Group, a Norway-based seismic acquisition specialist, will today file for bankruptcy after an attempt to restructure the company failed.
Simultaneously with the company filing for bankruptcy, its subsidiary Dolphin Geophysical AS will file a petition for bankruptcy with its relevant court.
Tim Wells, Dolphin Chairman and Atle Jacobsen, CEO, said that the company had to take this step due to the continued deterioration in the oil service market.
In a joint statement, they said: “It is a difficult decision, but in light of the unpredictability of the oil price and subsequent spending cuts of our customers, it has become impossible to have the visibility needed to continue our business. We have worked diligently since 2011 to build Dolphin into a company that would benefit all of our stakeholders- shareholders, lenders, suppliers, customers and our employees. We would like to express our thanks to all who have contributed to Dolphin over the last five years.”
To remind, the company last week hinted something like this might happen, saying it might be forced to file for insolvent liquidation if its lenders reject its debt restructuring proposals.
As of September 30, 2015, Dolphin had a total of 434 employees, including subcontractors engaged as part of the seismic crew on its operated vessels. The company has had two rounds of job cuts this year, reducing workforce by 129 positions, citing the lowered client demand for seismic services.
GC Rieber affected as well
Today’s news aren’t only affecting Dolphin Group and its employees. Norwegian shipowner GC Rieber Shipping has had three vessels on long-term contracts to Dolphin. Responding to Dolphin’s bankruptcy filing news today, GC Rieber Shipping said it would immediately start looking at options for employment of its seismic fleet.
“GC Rieber Shipping believes its high quality and efficient vessels will attract interest even in a further consolidated seismic market,” the company said.
Also, GC Rieber Shipping’s outstanding receivables from Dolphin amount to approximately $20 million.
“GC Rieber Shipping will seek to recover outstanding and future claims and losses from the Estate, but it is uncertain to which extent demands will result in significant coverage,” the company added.
Offshore Energy Today Staff