Oslo-listed seismic vessel operator Dolphin Group has announced today that it may have no choice but to file for insolvency.
Dolphin initiated talks with stakeholders last week over its debt issues but has failed to reach an agreement that will allow for a restructuring of the struggling company.
“Without a firm solution accepted by the group’s main stakeholders, and in light of its financial situation, the board of directors of the company is of the opinion that the group’s current business cannot be continued as it is currently carried out,” the company said in a statement.
The board are currently looking for alternatives, but cautioned: “Unless a sufficiently acceptable solution has soon been reached with the group’s relevant stakeholders, the company will have no choice but to file for insolvent liquidation of the company.”
Late October, the first warning sign of problems came when Sanco Shipping served Dolphin with a notice of time charter termination for the seismic vessels Sanco Swift and Sanco Sword. Dolphin were believed to be in charter default, having recorded a net loss of $15m in its second quarter results.