Norwegian shipowner Atlantic Offshore says it has secured its continued operation amid the weak offshore market with an agreement to sell the majority of its operations.
The operations will be sold to Aegopodium AS, a newly established company owned 100% by H. Øgreid & Sønner AS.
The consideration for the transaction is NOK 16.9 million, or just over US $2 million.
“The last few months have been extremely challenging. In the past few weeks we have continued operations under guarantees from secured creditors in the subsidiaries and we are pleased that there is now finally a solution. We have secured jobs for more than 400 skilled employees and ensured continued and uninterrupted services for more than ten offshore fields in Norway and the UK,” said Roy Wareberg, CEO of Atlantic Offshore AS, who will assume a similar role in the new company.
“It has been a tough time for all parties involved and we sympathize with those who sustain losses. However, we are confident that the result represents the best possible solution for all stakeholders,” Wareberg added.
“The weak market will continue to be a challenge for several years, and we need to take further steps to ensure our continued competitiveness. Several contracts are up for extension later this year, and we will work hard to earn the trust of our customers and secure the value of our business,” Wareberg says.
The board and management of Atlantic Offshore AS have been pursuing strategic options for the company for more than a year. In the middle of February, the board presented a restructuring solution that had support from the main shareholders, but the solution was rejected by bondholders in March, forcing the Atlantic Offshore to seek a different option.
The rejection led to the agreement announced Tuesday that will result in the continuation of the industrial operations for the benefit of employees, customers, suppliers and other relevant parties, the company said.
Atlantic Offshore subsidiaries included in the agreement are Atlantic Offshore Gamma AS, Atlantic Offshore Alpha AS, Atlantic Offshore Epsilon AS, Atlantic Offshore Eta AS, Atlantic Offshore Zeta AS, Atlantic Offshore Management AS, and Atlantic Offshore Crew AS. Certain assets and personnel in Atlantic Offshore Rescue Ltd, and the shares in Atlantic Offshore Crewing Services Ltd and Atlantic Offshore Scotland Ltd, are also included in the agreement.
Under the agreement, following the completion of the transaction Atlantic Offshore Beta AS, Atlantic Offshore Delta AS and Team Atlantic AS will file for bankruptcy.