Marine seismic player Polarcus said on Tuesday it has defaulted on debt payments and that it will halt all interest and installment payments to finance providers.
As a result, the company’s shares fell over 30 percent before the Oslo Stock Exchange stopped trading on Tuesday morning.
During these difficult market conditions, Polarcus has been in detailed discussions with its bank lenders to explore financial solutions.
The lenders consented to the extension of certain financial obligations under the company’s bank facilities until 25 January 2021. However, Polarcus has now learned that no further extension will be granted at this time.
The company said it will continue to engage with all effected finance providers.
Nevertheless, it said that there can be no assurance or guarantee it will reach a deal; and no formal standstill agreement is in place between the company and any finance provider.
The company has retained ABG Sundal Collier as financial advisor and Wiersholm and Walkers as legal advisors to assist in its process to address the contemplated restructuring of its balance sheet.
Polarcus noted it has managed to maintain market share in an extremely challenging market and to achieve a financial position where operations are cash positive before debt service.
As of 26 January 2021, the company’s backlog amounted to approximately $130 million.
To remind, Polarcus slipped into the red in Q3 2020 as revenue fell some 76 per cent against prior year.
The Oslo-listed company reported third quarter 2020 loss of $13.5 million, versus profit of $13.7 million in Q3 2019.
Polarcus generated quarterly revenues of $24.3 million, down from revenues of $103.4 million in the prior year comparable period.