Oceanteam skips interest due on senior bonds as part of restructuring

By Susanna Moon

Chicago, Oct. 24 – Oceanteam ASA notified holders that it will defer interest that was due Oct. 24 on its senior bonds.

Oceanteam has begun talks with its banks and largest bondholders as part of the financial restructuring announced Oct. 20, according to a press release.

“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," Wilhelm Bohn, chief financial officer of Oceanteam, said in the release.

"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 Oct. 24 according to [the] bond agreement."

The company said it is looking at all of its options “given the current market conditions” and invited bondholders to contact the company.

Oceanteam said it will give details of its capital restructuring plan in the “near future.”

Oceanteam consists of two operating segments, Oceanteam Shipping and Oceanteam Solutions. Oceanteam Shipping owns, charters and manages deep-water offshore support vessels and fast support vessels. Oceanteam Solutions provides offshore solutions. The company is based in Bergen, Norway.

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