Cecon ASA Goes Bankrupt

Arendal-based subsea contractor Cecon ASA has requested the City Court of Aust-Agder to declare the company bankrupt having failed to present a plan for a compulsory composition.

The company has over the last four months explored options for a solution to the debt restructuring, which would have given creditors at least 25 percent dividend.

In December 2014, Cecon said that the company had not sufficient liquidity to pay creditors who wanted to petition the company bankrupt.

The relevant creditors are mainly Dutch companies that have claims against CECON subsidiary Cecon NL BV, where Cecon ASA were guarantor on some claims.

Due to recent and unforeseen events, the Company’s Cash balance (in Escrow against the Gaz De France (Gdf) contract ) was given to GdF against the Company´s will and understanding of the Escrow terms. This has eliminated a very important building block in the restructuring solution.

Furtermore, Cecon informed that its other subsidiaries would continue operating normally, and would not be affected by the case as long as the same companies were self-financed.

In January 2013, Cecon signed completion contracts for the three vessels under construction at Chantier Davie Canada. Hull 717-719 (Cecon Pride, Cecon Excellence and Cecon Sovereign). Cecon Pride is the first in a series of three large OCVs and was delivered in August last year. Recently-launched Cecon Excellence is scheduled for delivery in May 2015, while Sovereign is expected in May next year.

Following the company’s announcement, Oslo Børs and The Financial Supervisory Authority of Norway have decided to suspend the shares in Cecon ASA.

Subsea World News Staff; Image: Davie