Offshore service provider Oceanteam has announced that it will not meet its interest payments on a senior unsecured bond due today, following an announcement of its planned capital restructuring last week.
Oceanteam said it has already entered into dialogue with its banks and largest bondholders. The company will continue this process with the aim of establishing a revised capital structure and cost of capital supporting the long term growth of Oceanteam.
“The deferral of the company’s interest payments is the immediate result of our short term cash position that has been depleted by reduced rates and costs related to the recent extensions of vessel contracts of CSV Bourbon Oceanteam 101 and CSV Southern Ocean and SPS for CSV Bourbon Oceanteam 101“, said Wilhelm Bøhn, CFO of Oceanteam.
“Due to these events we are enduring unexpected delays in the first payments on charter hires on the above mentioned contracts and are not in a position to meet the interest payment obligations that are due on 24 October 2016 according to bond agreement,” Bøhn added.
The company said it is currently reviewing all alternatives available given the current market conditions and will detail its capital restructuring plan in near future.