Polarcus Limited ("Polarcus" or the "Company") (OSE: PLCS) announces its decision to formally address its long term financing structure with the aim of restructuring the Company's balance sheet.
In line with the Company's "2015 Agenda" earlier communicated, the Company has over the last twelve months taken a number of measures to improve its financial situation. The sales functions have been restructured and the Company's cost base has been significantly reduced. These efforts together with strong operating performance of the vessels has enabled the Company to gain market share in a difficult market and achieve a position where the operations are cash positive before debt service.
In order to address the Company's long term financing structure and debt service, it has initiated discussions with its finance providers, being the banks, lease providers and certain bond holders. The finance providers are in active dialogue with the Company regarding its efforts to find a long term solution to the Company's financial position. While these discussions are ongoing, the Company has decided to halt all payments of interest and amortization to all of its finance providers. The finance providers have been informed of such payment halt.
The Company will work intensively with its finance providers to reach an amended and sustainable arrangement in an expeditious manner. While Polarcus is confident that new agreements will be reached with the relevant stakeholders, there can be no assurance or guarantee that such final agreements will be reached or consummated.
In anticipation of the successful outcome of the discussions with the finance providers, the Company will continue to operate normally in all other respects. The liquidity of the Company remains stable for the period to come in anticipation of an amended financing arrangement. As of 7 December 2015 the Company's cash position was USD 68 million and backlog amounted to USD 150 million.
It is emphasized that it is the Company's intention that the amended arrangements to be entered into with the Company's finance providers are on the basis that all trade creditors of the Company and its subsidiaries will continue to be paid in full, and that the arrangement will not have negative impact on any of the trade or non-finance creditors of the Polarcus group.
Polarcus has retained ABG Sundal Collier as financial advisor and Wiersholm as legal advisor to assist the Company in its process to address the contemplated restructuring of the Company's balance sheet.
Tom Henrik Sundby, CFO
+971 50 708 6480
Hans-Peter Burlid, VP Finance & Investor Relations
+971 50 559 8175
Polarcus (OSE: PLCS) is an innovative marine geophysical company with a pioneering environmental agenda, delivering high-end towed streamer data acquisition and imaging services from Pole to Pole. Polarcus operates a fleet of high performance 3D seismic vessels incorporating leading-edge maritime technologies for improved safety and efficiency. Polarcus offers contract seismic surveys and multi-client projects with advanced onboard processing solutions and employs nearly 500 professionals worldwide. The Company's principal office is in Dubai, United Arab Emirates. For more information, visit www.polarcus.com
The information included herein may contain forward-looking statements. Forward-looking statements include all statements that are not historical facts, including but not limited to statements expressing or implying the Company's intent, belief or current expectations with respect to, among other things, forecasts, estimates, and predictions. Such forward-looking statements necessarily involve risks and uncertainties and are dependent on assumptions, information, data or methods that may be incorrect or imprecise. Actual results could differ materially from expectations expressed in the forward-looking statements if one or more of the underlying assumptions or expectations proves to be inaccurate or is unrealized. Some factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, developments in the oil and gas industry, the demand for seismic services, the demand for data from the Company's multi-client library, currency risks, political risks, regulatory risks, and unexpected operational setbacks. For a further description of other relevant risk factors we refer to our 2014 Annual Report. The reservation is also made that inaccuracies or mistakes may occur in the information given above concerning the current status of the Company or its business. Any reliance on the information given above is at the risk of the reader, and Polarcus disclaims any and all liability in this respect.
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)