Polarcus Addressing Long Term Financing Structure Following Financial Default
26 Jan 2021
Polarcus Limited (“Polarcus” or the “Company”) (OSE: PLCS) has confirmed to the relevant Finance Parties a payment default under its Working Capital Facility Agreement. The Company intends to pursue all available options with a view to ensuring the financial sustainability of the Company and in the meantime will halt all payments of interest and amortization to finance providers.
In light of the sustained economic challenges globally, the Company has been in detailed discussions with its bank lenders, (the “Lenders”) to explore financial solutions. During this period, the Lenders consented to the extension of certain financial obligations under the Company’s bank facilities until 25 January 2021 including the obligation to clean down the USD 25 million which had been drawn down from the Group’s Working Capital Facility Agreement (“WCF”). The Lenders have now informed the Company that no further extension will be granted at this time. With the expiration of the previous clean down extension, an event of default has been triggered under the WCF and, in turn, a cross-default of the Group’s other bank facilities and of the Convertible Bond Loan. Agents under the respective facilities have been informed. The Company has not received any notice of debt acceleration.
The Company will continue to engage intensively with all effected finance providers. Nevertheless, there can be no assurance or guarantee that any consensual agreement will be reached or consummated and no formal standstill agreement is in place between the Company and any finance provider.
Commencing shortly after the inception of the COVID-19 pandemic, the Company has taken a number of measures to improve its financial situation. The global organization has been restructured to incorporate a streamlined hemisphere model and the Company’s cost base has been significantly reduced (see press releases dated: 31 March and 22 June, 2020). These efforts together with a consistently high level of project performance has enabled the Company to maintain market share in an extremely challenging market and to achieve a financial position where operations are cash positive before debt service. As of 26 January 2021, the Company’s backlog amounted to approximately USD 130 million.
The Board of Directors will continue to take steps to manage the Company in the interests of all stakeholders and to operate normally in all other respects. In particular, trade creditors will continue to be paid in full and within current agreed payment periods and clients will continue to receive the high project performance standards for which Polarcus has become recognised over the past decade.
Polarcus has retained ABG Sundal Collier as financial advisor and Wiersholm and Walkers as legal advisors to assist the Company in its process to address the contemplated restructuring of the Company’s balance sheet.
Duncan Eley, CEO
+971 4 43 60 915
Hans-Peter Burlid, CFO
+971 50 559 8175
Polarcus (OSE: PLCS) is a focused geophysical service provider of safe and environmentally responsible marine acquisition services globally. Our geophysical offering is driven by innovation and collaboration to provide clients with better seismic data faster. Polarcus operates a fleet of high performance seismic vessels with 3D and 4D imaging capabilities, which incorporate leading-edge technologies for improved environmental performance and operational efficiency. Polarcus offers contract seismic surveys and multi-client projects with advanced priority processing solutions including Cirrus, a suite of cloud-based applications and services designed to bring clients closer to acquired seismic data, enabling faster and better informed exploration decisions. The Company services its clients globally from its head office in Dubai and regional offices located in Houston, London, Singapore and delivers Group asset management services from Oslo. For more information, visit www.polarcus.com
This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.