Polarcus: Notices of enforcement
26 Jan 2021
Polarcus Limited (“Polarcus” or the “Company”) (OSE: PLCS) refers to the announcement issued earlier on 26 January 2021 (Polarcus Addressing Long Term Financing Structure Following Financial Default). During trading hours today, Polarcus Asima AS, Polarcus Alima AS, Polarcus Amani AS, Polarcus Adira AS, Polarcus Nadia AS, Polarcus Naila AS and Polarcus Shipholding AS (collectively, the “Former Subsidiaries”) each received default and enforcement notices sent on behalf of the bank lenders (“Lenders”) under bank facility agreements of which the Former Subsidiaries are obligors (the “Facility Agreements”). The Former Subsidiaries are the owners of the seismic vessels which bear the company name. The Lenders have enforced share pledges over the Former Subsidiaries, transferring all issued shares in each Former Subsidiary to a company controlled by the Lenders and which sits outside of the Polarcus Group. The Lenders have also replaced the directors of each Former Subsidiary with a nominee of their own.
In parallel with their actions described above, the Lenders have made it clear to the Company that their intention is not to jeopardise or destabilize the Polarcus organization. The Lenders have intentionally not made any demand for payment from guarantors of the Facility Agreements (including the Company) nor have the Lenders sought to enforce any other collateral which they hold (though the Lenders reserve their rights to do so). The Lenders have confirmed that they are open to entering into a standstill period which will allow continued operations and awarded projects to be undertaken without disruption and discussions are underway in this regard.
The Company remains committed to solving its long-term financing requirements in a manner which satisfies the Lenders and other stakeholders’ requirements.
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 of the Norwegian Securities Trading Act.