OSLO, Dec 14 (Reuters) – Seismic surveyor Dolphin Group is filing for bankruptcy, the firm said on Monday, after a prolonged fall in crude prices has reduced the amount of work available from oil companies.
Oil companies have slashed spending as crude price have dropped around 67 percent since mid-2014. Seismic surveyors, which map out the seabed in search of oil and gas deposits, have suffered as a result.
"Due to the continued deterioration in the oil service market Dolphin has had to make the decision to file for bankruptcy," the firm said in a statement.
Dolphin said last week that it needed more equity to reduce its debt in order to survive and that the recent drop in North Sea crude prices to below $40 per barrel made the talks more difficult.
Of its long-term debt of about $250 million, $150 million is unsecured bond debt with an interest rate of three-months NIBOR plus 750 basis points.
In addition there are two secured term loans totalling $60 million at LIBOR plus 400 basis points, while the remaining $40 million is secured lease debt.
(Reporting by Stine Jacobsen, editing by Louise Heavens)
Copyright 2016 Thomson Reuters. Click for Restrictions.
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