Atlantic Offshore saved by saleCompany News // April 14, 2016
Norwegian offshore vessel owner Atlantic Offshore, which specialises in operating emergency response vessels and other offshore ships, has completed an agreement securing continued operation of much of the company and fulfilment of contractual obligations. Under the agreement, Atlantic Offshore AS had sold most of its operations and subsidiaries to Aegopodium AS, a newly established company owned 100 per cent by H Ogreid & Sonner. The company said its main secured creditors are parties to the agreement.
“The last few months have been extremely challenging. In the past few weeks we have continued operations under guarantees from secured creditors and we are pleased that there is now finally a solution,” said Atlantic Offshore chief executive Roy Wareberg, who will retain his position at the new company.
“We have secured jobs for more than 400 employees and ensured continued and uninterrupted services on more than 10 offshore fields in Norway and the UK. It has been a tough time for all parties involved and we sympathise with those who have sustained losses. However, we are confident that the result represents the best possible solution for all stakeholders."
The board and management of Atlantic Offshore have been pursuing a number of options to secure the future of the company for more than a year. In mid-February 2016, the board presented a restructuring solution to its main stakeholders but this solution was rejected by the bondholders in the ATOFF03 2013/2018 bond issue at a meeting on 4 March 2016. Since then the company and its subsidiaries have been working on various restructuring alternatives, including a revised capital structure involving the bond loan, as well as transaction and liquidation scenarios.
The parties to the master agreement that has now been agreed are the company and most of its subsidiaries, the buyer and its 100 per cent owner H Ogreid & Sonner, as well as the main secured creditors of the group. The master agreement involves transfer of shares in 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 to the buyer or subsidiaries of the buyer.
In addition, the buyer has, through its subsidiaries, acquired certain assets and personnel in Atlantic Offshore Rescue Ltd and the shares in Atlantic Offshore Crewing Services Ltd and Atlantic Offshore Scotland Ltd from the administrator appointed in the UK with respect to Atlantic Offshore Rescue Ltd.
Subsequent to completion of the transaction, Atlantic Offshore Beta AS, Atlantic Offshore Delta AS and Team Atlantic AS will file for bankruptcy. Scottish Group companies Atlantic Offshore Rescue Ltd and Atlantic Offshore Aberdeen Ltd have become subject to a court-appointed administration process, for which EY has been nominated as administrator.