In trouble World Wide Supply takes legal action against Petrobras

In trouble World Wide Supply takes legal action against Petrobras

The decision by Petrobas on Septbemer 16 to cancel charters for two of World Wide Supply’s OSVs has put the Norwegian company on the brink and forced it to take legal action against the Brazilian energy major.

Via the company’s Brazilian lawyer Petrobras has been notified that the termination is considered unlawful and that the Bazilian firm has a contractual obligation to pay $4m hire over a three month period.

The termination of the contracts has caused World Wide Supply to have only two of its four vessels employed. The company’s liquidity is now reduced to$ 5.6m making it in breach of the $7.5m minimum liquidity covenant set out in a bond loan agreement with Nordic Trustee. Nordic Trustee has given notice that an event of default has occurred under the bond loan agreement and has given World Wide Supply until November 20 to fix the situation, something Nordic Trustee is not confident World Wide Supply will manage given the depressed market.

Nordic Trustee has ready an action plan as World Wide Supply’s main creditor, which includes increasing the company’s cash flow and reducing debt levels.

 

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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