World Wide Supply (WWS), a Norwegian offshore vessel owner, will not pay an interest payment due November 27, 2015.
In an Oslo Bors filing on Thursday, the company said it was “in default of some of its obligations under the bond agreement.”
The company said its available liquidity is limited and the current financial situation does not allow for full interest payment scheduled to be paid in November 2015, and “no such payment will be effectuated.”
World Wide Supply said it would continue its dialogue with Nordic Trustee and the informal bondholder’s committee.
In an update earlier in November, World Wide Supply hinted of this outcome, saying that as of September 30, its liquidity was reduced to $5.6 million.
At the time, World Wide Supply said: “The company is thus in breach of the minimum liquidity covenant of $7.5 million set out in bond loan agreement with Nordic Trustee. The company’s liquidity will remain below the covenant in the loan agreement.”
Only two vessels working
Based in Ulsteinvik, Norway, the company owns six platform supply vessels which it leases to the international oil and gas industry.
However, of the six vessels it owns, only two units are currently generating revenue. In its fleet utilization for October, the company reported average utilization of only 32.31 percent.
In September, the company stacked two platform supply vessels in Alesund, Norway due to a lack of work. In the same month, Brazilian oil Petrobras terminated contracts for two WWS’ vessels, reducing the company’s fleet working in Brazil from four to two units.
World Wide Supply has accused Petrobras of unlawful termination. Read more on that here: https://bit.ly/1METBSK
Offshore Energy Today Staff