Polarcus: Lenders withdraw support of ongoing vessel operations

Vessels are now no longer available and employees will be issued notice of employment termination.

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 management team 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.

Since the earlier announcements, the company has been in continuous dialogue with the lenders and the new managers of the former subsidiaries. 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 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.