Polarcus: Lenders withdraw support of ongoing vessel operations
2 Feb 2021
Polarcus Limited (“Polarcus” or the “Company”) (OSE: PLCS) refers to the announcements issued on 26 January 2021 concerning the enforcement of share pledges over the Former Subsidiaries. Capitalized terms in this announcement have the same meaning as given in those announcements.
Since the earlier announcements, the Company has been in continuous dialogue with the Lenders and the new managers of the Former Subsidiaries (“New Managers”). The Company’s objective of those discussions has been to ensure the safety of current vessel operations and the stability for the Company and its subsidiaries for the benefit of all Polarcus’ stakeholders. The Company has sought to negotiate a standstill agreement relating to the Lenders’ security rights against the Company and its subsidiaries (“Group”) which have not been enforced as well as to execute a collaboration agreement with the New Managers. Such an agreement would have permitted the continuation of current and awarded seismic projects for which the operating A-Class and N-Class vessels (“Vessels”) have been long committed to various E&P companies globally.
The Company has received notice from the Lenders that they no longer support the continuance of the Company’s business relating to the Vessels and the New Managers have instructed Polarcus to sail the Vessels to safe locations in order to initiate a sales process.
Polarcus will continue to co-operate with the Lenders and the New Managers on their instructions to bring current operations safely to an end. The Company is also communicating with its clients in relation to upcoming awards for which the Vessels are now no longer available and to seek alternative solutions for them.
In light of these circumstances and given their impact on the Group’s financial position, notice of termination of employment will shortly be issued to all Group employees.
The Lenders have made clear that they remain open to discuss a standstill period in relation to their remaining claims and collateral with the view of finding a solution which would allow the continued operation of Vyacheslav Tikhonov, owed by Polarcus Selma Limited, a subsidiary of the Company. The Lenders do not hold any security in either this vessel or this subsidiary. Polarcus will continue to pursue such a standstill agreement in order to bring stability to the remainder of its business.
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
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 2019 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 to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act