Oceanteam Defers Senior Bond Interest Payments, Names Interim CFO

The Norwegian-Dutch offshore service provider Oceanteam ASA has informed its bondholders that the company will defer its interest payments on the Senior unsecured Bond due 24 October.

The news comes after Oceanteam started initial talks with banks and largest bondholders last week as part of the planned capital restructuring.

The company will continue this process with all its bondholders 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.”

The company is currently reviewing all alternatives available given the current market conditions.

“We are aiming to continue our constructive dialogue with our banks and bondholders alike. We invite all bondholders who hitherto may not have had direct communication with the company to contact us”, said Bøhn.

Oceanteam ASA will detail its capital restructuring plan in near future.

Last week, the company appointed Wilhelm Bøhn as interim Chief Financial Officer (CFO).  Bøhn, who holds an MBA from Columbia University and a BA from the Johns Hopkins University, has a solid track record in corporate finance and has been involved in a number of restructurings, Oceanteam said.

He will head the company’s financial department and in particular lead the current financial restructuring process.

Oceanteam is comprised of two operating segments, Oceanteam Shipping and Oceanteam Solutions.

The company is also the owner of KCI The Engineers, RentOcean, and Oceanteam Cable Solutions.

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