Offshore support vessel company Hermitage Offshore Services (NYSE:PSV) has announced that it and 28 of its vessel-owning subsidiaries have filed for Chapter 11 bankruptcy.
The voluntary petitions for reorganization were file in U.S. bankruptcy court in the Southern District of New York.
The NYSE-listed company said it took the action due to the prolonged slump in global oil prices, driven in part by the coronavirus pandemic.
“While the Company would have preferred to complete its financial restructuring out of court, it was unable to reach a consensual agreement with its lenders, which made filing Chapter 11 necessary to provide a single forum for all continuing conversations with its lenders,” Hermitage said in a statement.
The company said it does not expect business operations and relationships with its customers and vendors to adversely affected while it works with its lenders.
Hermitage Offshore Services Ltd. owns 21 vessels consisting of 10 platform supply vessels and 11 crew boats operating primarily in the North Sea and the West Coast of Africa, according to its website. Yesterday, it announced the sale of two anchor handling tug supply vessels.
Hermitage Offshore Services was incorporated in the Marshall Islands in 2013. It is currently headed by Emanuele Lauro, who was appointed Chairman and Chief Executive Officer in December 2018. Lauro founded Scorpio Tankers and Scorpio Bulkers and currently holds the position as Chairman and CEO at both companies.