Norwegian-Dutch offshore service provider Oceanteam is in the process of developing a restructuring plan that will secure a capital cost and structure and support the company’s financial flexibility.
The company, which is comprised of two operating segments, Oceanteam Shipping and Oceanteam Solutions, said on Friday it has initiated constructive dialogue with its stakeholders to shape its financial restructuring process and improve the financial flexibility in today’s challenging market situation.
Oceanteam stated the company is facing serious financial restraints by its current capital cost and structure, which is restricting its ability to develop in the interest of its stakeholders.
This has taken the effect of immediate cash liquidity constraint for various reasons – some of temporary and some of permanent character, Oceanteam explained. The company also added it needs financial flexibility to further advance the business while coping with the market circumstances.
Consequently, Oceanteam said, the company has initiated dialogue with its banking group and will immediately do the same with its Bondholders with the aim of establishing a revised capital structure and cost of capital supporting the long term growth of Oceanteam.
The company also said on Friday it has appointed Wilhelm Bøhn as interim chief financial officer (CFO).
According to the company, Bøhn has a solid track record in corporate finance and has been involved in a number of restructurings. He will head the company’s financial department and in lead the current financial restructuring process.
Bøhn said: “Oceanteam records solid performances in its shipping and solutions divisions. But its growth is restricted by a cost of capital that is too high and its lack of financial flexibility to cope with and adapt to today’s market circumstances.