Norwegian-Dutch offshore service provider Oceanteam informed on Sunday it will not meet its interest payments on the senior unsecured bond due on Monday, October 24, 2016.
This information was preceded by Oceanteam’s initial talks with banks last week kicking off the company’s planned capital restructuring.
As part of the financial restructuring that was announced on October 20, 2016, Oceanteam said it has already entered into dialogues with its banks and largest bondholders. The company will continue this process with all its bondholders with the aim of establishing a revised capital structure and cost of capital, Oceanteam stated.
Wilhelm Bøhn, CFO of Oceanteam, said: “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.”
“Due to these events we are enduring unexpected delays in the first payments on charter hires on the above-mentioned contracts and are not in a position to meet the interest payment obligations that are due on 24 October 2016 according to Bond Agreement.”
The company added it is currently reviewing all alternatives available given the current market conditions.
“We are aiming to continue our constructive dialogue with our banks and bondholders alike,” says Bøhn.