Is Bankruptcy Ahead for Major Norwegian Offshore Player?

Norway’s DOF Group, which has a fleet of more than 60 offshore service vessels, now faces either a forced restructuring under the Norwegian Reconstruction Act, or bankruptcy, MarineLog reported. At an extraordinary general meeting (EGM) today, the company’s shareholders rejected acceptance of a proposed consensual restructuring that had been agreed to by the company’s major creditors. Prior to the EGM, the shareholders were sent a letter from the creditors that noted that they hold claims against the company equivalent to approximately NOK 23 billion (about $2.3 billion). “With few exceptions,” said the letter, “no interest or amortisation has been paid on such claims for the last 30 months. DOF ASA’s equity and parts of DOF’s secured and unsecured debt is lost. The Restructuring therefore provides for creditors to convert an aggregate amount of approximately NOK 6.2 billion into equity in DOF. Notwithstanding the fact that the debt claims that will be converted rank senior to the shareholders’ equity, and hence such equity is lost, the Restructuring provides for DOF’s shareholders to retain a 4% stake in DOF in return for their co-operation. The proposal to the shareholders is therefore by all accounts fair and equitable.” Read more.