Dolphin Group Could be Forced to File for Insolvent Liquidation
Dolphin Group ASA, the parent company of Dolphin Geophysical AS, which supplies the oil and gas industry with marine geophysical services, has warned that it could be forced to file for insolvent liquidation if it doesn’t reach an agreement with its main stakeholders that will allow for a successful completion of the restructuring of the group's debt and capital structure.
The company revealed that it has continued to work closely with its advisors on various proposals, but is yet to reach an agreement with its main stakeholders regarding a restructuring plan. Without a firm solution accepted by the stakeholders, the board of directors of the company believe that the group's current business “cannot be continued as it is currently carried out”. The board has indicated that it is searching for alternative solutions, although admitted that unless a sufficiently acceptable solution is soon reached with the group's relevant stakeholders, the company will have no choice but to file for insolvent liquidation.
Erik Hokholt, Dolpin’s chief financial officer, was not immediately available for comment.
In its interim third quarter financial results, Dolphin Group posted total revenues of $78.7 million (3Q 2014: $128.5 million) and earnings at the EBITDA level of $18.4 million (3Q 2014: $38.2 million). The company registered a $31.1 million loss in 3Q 2015, compared to a profit of $12.2 million in the same period last year.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.