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    SeaBird Exploration "could default" on financial commitments

    Company News // October 2, 2014

    Reuters reports that seismic survey company  SeaBird Exploration has failed to renegotiate a convertible loan and may default on the facility, which could automatically mean a default on a bigger secured callable bond. Reuters was quoting a statement issued by the company.

    The same report said SeaBird may default on a US$14.9 million convertible loan from financial investor Perestroika that was due on September 30th, which could mean an automatic default on a US$81.9 million SBX03 callable bond maturing on December 18th 2015.

    In the statement, the company said: "SeaBird's view is that a viable and responsible solution requires that 100 per cent of SBX03 and 100 per cent of Perestroika (facility) are converted to equity at NKr 0.35 per share."

    According to a recent presentation from the company, SeaBird has been conducting a cost reduction effort. This includes consolidating offices to improve efficiency and cost structure; eliminating a costly expat set-up in Dubai; reducing its onshore head count and streamlining operating functions.

    The company said it was targeting savings of US$3 million per year initially, looking into improved execution of key business processes and conducting a review of key operational procedures.

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