Amid a deteriorating oil services market, Prosafe Management has decided to replace its ceo.
Stig Christiansen is the new interim ceo, replacing Karl Ronny Klungtvedt at the world’s top owner and operator of semi-submersible accommodation vessels. Christiansen will also continue as cfo, while the board sets about finding a permanent ceo replacement.
Prosafe has admitted today it has been close to not being able to handle its financial covenants due to contract cancellations and delays as well as the unavailability of the bond market as a refinancing source.
“Prosafe is in an ongoing dialogue with the company’s key stakeholders, including the main shareholders, bondholders, bank lenders and yards, and the company is currently working with stakeholders and advisors to evaluate alternatives to improve the financial situation,” the firm said in a release today.
Prosafe has obtained a reduced minimum liquidity bank covenant of $20m until the end of the third quarter 2016. This temporary reduced level is applicable to both its $1.3bn facility and its $288m newbuild facility. In addition the company will utilise the second skipped payment option that was granted by the banks in the previous amendment process closed around year-end 2015. Further amendments to the bank and bond agreements will however be required in order to secure what Prosafe described as “a robust financial foundation”.
Not a surprise at all due to the bad decisions being made since 2012
Hopefully some of the rest of them will go as well now