Oceanteam defers bond payment
Offshore contractor says it can't meet interest payments due today
Offshore contractor Oceanteam said that it will not meet the interest payments on its senior unsecured bond that is due today.
The move follows the company’s announcement last week that it was starting a financial restructuring process due to a challenging market situation.
Oceanteam, which is in talks with its banks and largest bondholders, aims to establish a revised capital structure and cost of capital that supports its long-term growth.
The company is reviewing all available alternatives and will detail a capital restructuring plan in near future, it said.
“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,” chief financial officer Wilhelm Bøhn said.
“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.”