Polarcus restructures in order to survive

Dubai-based seismic specialist Polarcus has announced that it will go through a major financial restructuring process.

The company has initiated discussions with its finance providers to find a long term solution to its financial position, and while these discussions are ongoing, Polarcus has decided to halt all payments of interest and amortization to its finance providers.

Polarcus will continue to operate normally in all other respects. It currently has a cash position of $68m and backlog of $150m and is confident that new agreements will be reached with the relevant stakeholders.

Any new arrangement made will be on the basis that all trade creditors of the company and its subsidiaries will continue to be paid in full, and that the arrangement will not have negative impact on any of the trade or non-finance creditors of the Polarcus group.

Polarcus said it has retained ABG Sundal Collier as financial advisor and Wiersholm as legal advisor to assist through the process.