Hermitage Offshore Services, part of Emanuele Lauro-led Scorpio Group, has voluntarily filed for reorganisation under chapter 11 of the bankruptcy code in the United States Bankruptcy Court, citing the prolonged slump in global oil prices driven in part by the global coronavirus pandemic.
The company said it took the action after it was unable to reach a consensual agreement with its lenders for a financial restructuring out of court.
Hermitage anticipates that the company’s business operations with its customers and vendors will not be adversely affected by the proceeding while it works constructively with its lenders toward a consensual resolution.
According to the company, its customers and vendors have been historically paid by one of the company’s managers which is outside the chapter 11 case and so they will be paid amounts due now and in the future without interruption.
Earlier today, Hermitage announced the sale of anchor handling tug supply vessels Hermit Baron and Hermit Brilliance. The sale will leave it with 21 vessels made up of 10 platform supply vessels and 11 crew boats.