Financially troubled Norwegian offshore vessel owner DOF has failed to secure the necessary majority backing from its shareholders for what was expected to be a major financial restructuring of the company.
The restructuring deal, backed by the company’s creditors and bondholders, would have left the current shareholders with 4% of the shares in the new DOF. Bondholders would own around 53%, while the secured lenders would get a share of around 43%.
A large group of minority shareholders, which held over 30% of DOF, opposed the deal, despite warnings by the creditors that there would be no better alternative. The so-called DOF Minoritetsgruppen had said it would vote against the scheme under claims the restructuring process would squeeze them out. Instead, the group proposed raising fresh funds on the back of a strong recovery in the offshore sector and called for a clearer picture of DOF’s prospects and financials.
The next step for the proposed restructuring will most likely be implemented as a forced process pursuant to the Norwegian Reconstruction Act or through bankruptcy in DOF, leaving the shareholders with less or no value compared to the proposed restructuring.
DOF was founded in 1981 by Helge Møgster, who is also the largest shareholder. The Austevoll-headquartered company has a fleet of 54 OSVs, and owns around 70 remotely operated vehicles (ROVs).
