AJ Jain, managing director of Harkand North America, has agreed to a management buyout of bankrupt Harkand’s businesses in North America and Africa, with backing from Oaktree Capital Management.
The new company will be called Ethos Offshore and will continue to provide the full scope of subsea engineering and construction services to Harkand’s existing US, Mexican and West African clients.
Ethos will be backed by investment funds advised and managed by Oaktree, one of Harkand’s former backers. The contract backlog is estimated at some $145m in projects.
“Throughout the transition process, our focus will be to ensure that there is no disruption to clients. Our project teams will continue to deliver the high standard of services that our clients are accustomed to,” said AJ Jain, who will become Ethos’ CEO.
Guillaume Bayol, Vice President at Oaktree, added: “The management team of Ethos Offshore, led by AJ Jain, has an established track record of delivering excellence to clients and partners in the Gulf of Mexico and West African markets.
“We view this as an opportunity to build a platform and business model that can thrive in today’s challenging environment.”
The Aberdeen-based Harkand group announced on Thursday it has entered administration in the UK, including all but one of its subsidiaries.
In February, Harkand and its local partner Esopeg established Harkand Angola, a joint venture that will provide subsea inspection, repair and maintenance (IRM) services in the African country.