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Fred. Olsen Energy must find an alternative in the refinancing work after the withdrawal of the current buyer of the "Dolphin Drilling Vessel".
The sale of the unit was an important part of the debt compensation attempt and last week the company warned that the alternative to a refinancing solution was bankrupt.
"It's a break in the sea," says analyst Steffen Evjen of Danske Bank at E24.
"We thought that the sale of the device was an important part of the overall solution." It seemed like it was in place, but the market was disrupted recently, he said.
In Oslo, investors agree to send Fred. Olsen Energy's share fell eight percent Wednesday morning after the news.
Comment on the stock (+): Are four unemployed platforms from the 1970s worth more than ten billion?
Remember that the drill ship is sold
Fred. Olsen Energy announced earlier in November that it had negotiated with the potential buyer the sale of "Bolette Dolphin" at a price of $ 340 million, as part of the complete refinancing of the platform company.
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But late on Tuesday night, the company announced that the current buyer had pulled out due to the drastic change in oil prices and the uncertainty associated with Fred's refinancing process. Olsen Energy.
– This puts a temporary end to the process, but I still think that they will try to sell the drill ship. It's an attractive unit, says Evjen.
"I think there are a lot of buyers out there, at the right price, it's worth noting," he says.
The brokerage agency estimates that the drill ship is worth at least $ 300 million. It was built in 2013 and was part of the third quarter of the so-called intelligent edition outside Tenerife.
"This is probably an American buyer, where the device can offer better opportunities to contract under rather quickly.It's a pretty hot unit.It will cost relatively little to take it out," says the company. 39, analyst at Danske Bank.
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Work with alternative solutions
Last week, it was clear that one of the lenders would not support the refinancing proposal.
In its announcement Tuesday, the company writes that the proposal is no longer viable after the withdrawal of the buyer.
Fred. Olsen Energy's head, Ivar Brandvold, said the company could not say there were other stakeholders and that she could not ask if the decision to the buyer was a negotiation.
The salvage proposal was submitted earlier in November and related to the drill ship's gross sales, the conversion of all bond debt into equity, the acquisition of new capital, the payment to creditors with secured collateral and a minimum remaining for current shareholders.
"We are not starting to work again, we have been talking for a long time, discussions will continue and the company's task is to work towards a viable solution," Brandvold said.
– How do you assess the situation now?
– We have not commented on how we evaluate the situation throughout this process. Our job is to look for a solution, which means the work continues. Some speculation beyond what we can not do, "says Brandvold.
"He is constantly working with alternative solutions and this work will continue," he says.
Rigger in print
One of Fred's big challenges. Olsen Energy during the oil season has been that most of the fleet has finished.
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In addition to the modern drill ship Bolette, the company has a fleet of six drill units, but two of them must be discarded, Fred said. Olsen Energy in the third quarter report.
According to the quarterly report, "Blackford Dolphin" concluded a contract in October on the last four aircraft, while the other three were outstanding.
By the end of the quarter, cash had declined to $ 154 million or $ 452 million in the same period last year.
Until June 30, the company had entered into a temporary agreement with creditors providing for the termination of installments. After the parties did not agree to continue, the company closed on July 3 to service its debt.
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