Polarcus, a company providing marine seismic services for the oil and gas industry, has decided to stop paying interest to its lenders while looking at options for restructuring and long-term financing.
In a statement on Monday, the Dubai-headquartered company said it has initiated discussions with its finance providers, being the banks, lease providers and certain bond holders.
“The finance providers are in active dialogue with the Company regarding its efforts to find a long-term solution to the Company’s financial position. While these discussions are ongoing, the Company has decided to halt all payments of interest and amortization to all of its finance providers. The finance providers have been informed of such payment halt,” Polarcus said.
Polarcus, which owns a fleet of seismic vessels, said its liquidity “remains stable for the period to come in anticipation of an amended financing arrangement” .
As of December 7, 2015 the company’s cash position was $68 million and backlog amounted to$150 million.
The company in October posted its third quarter results, with a net profit of $19.8 million. The company’s CEO said at the time that looking ahead, the market remained uncertain on account of continued low seismic spending by oil companies. He also pointed out that tender activity remained volatile and market rates competitively low.
Offshore Energy Today Staff