Norwegian offshore drilling company Fred. Olsen Energy (FOE) has decided to change its name amid ongoing refinancing efforts.
At the end of November, the company called for an extraordinary general meeting to be held on December 20. The meeting’s agenda included the proposal for the company’s name change.
At the extraordinary general meeting of Fred. Olsen Energy held on Thursday, December 20, 2018, all proposals on the agenda were adopted, including the proposal to change the company’s name to Dolphin Drilling.
The proposal was approved by 52.75% of the shares represented while 0.08% voted against the proposal.
Failed refinancing proposal
FOE has been experiencing financial difficulties and is currently looking for a solution, or it might face bankruptcy.
To remind, FOE in early November presented to its stakeholders a proposal for the refinancing of its capital structure. Key elements of the proposal included the sale of the company’s drilling unit Bolette Dolphin, the issuance of new equity in the amount of approximately $130-140 million in consideration of approximately 89% of FOE’s share capital, post refinancing, and the issuance of new loan capital in the amount of approximately $90 million.
On November 22 FOE said it was in the process of negotiating a binding agreement for the sale of the Bolette Dolphin to a selected buyer at a price of $340 million.
The implementation of the proposal, starting with the sale of the Bolette Dolphin, required the unanimous support of FOE’s secured lenders. However, the key terms of the proposal received support from all lenders except for one.
Before managing to resolve the situation with the lender, FOE said at the end of November that the potential buyer of the Bolette Dolphin had withdrawn from the sales process given the significant change in oil and equity prices coupled with the uncertainty around the restructuring and sale process.
Due to the buyer’s withdrawal, FOE’s restructuring proposal became unviable, forcing the company to start considering other restructuring alternatives in dialogue with its key stakeholders.
FOE previously said that, unless a solution is found to the refinancing, the company would need to file for bankruptcy.
Offshore Energy Today Staff