Struggling seismic player Polarcus, which last week saw creditors take over its vessels following a debt payment default, on Tuesday said a Cayman Islands court has appointed joint provisional liquidators, after the company's application.
"The Board remains focused on pursuing a restructuring of its indebtedness and maintaining the underlying business as a going concern. Discussions between the Company and its creditors, including the Secured Creditors, remain ongoing," Polarcus said Tuesday.
The company said that it had "in furtherance of the Board's desire to effect a restructuring and to maximize value for all creditors" filed an application with the Grand Court of the Cayman Islands seeking the appointment of Soft Touch Provisional Liquidators over the company, with a specific mandate to work alongside the Board to pursue a restructuring in the interests of all creditors.
On 8 February 2021, Polarcus said, David Griffin and Andrew Morrison of Suite 3212, 53 Market Street, Camana Bay, Grand Cayman KY1-1203, Cayman Islands ("FTI Cayman") and Lisa Rickelton of 200 Aldersgate St, Barbican, London EC1A 4HD ("FTI London") were appointed as Joint Provisional Liquidators ("JPLs") by an order of the Court.
"Their appointment has immediate effect, and the JPLs are specifically authorized by the Court to take all necessary steps to develop and propose a restructuring of the company's financial indebtedness with a view to making a compromise or arrangement with the company's creditors or any class thereof," Polarcus said.
"The JPLs intend to discuss and consult with the Board wherever practicable throughout their tenure acting as agent for and on behalf of the Company and to work alongside the Board in pursuing a restructuring and in ensuring that returns to creditors are maximized," the company added.
"The Board retains all powers of management conferred on it by the Order, subject to the appropriate and necessary oversight and monitoring of the JPLs as regards the exercise of such powers. The Board and the boards of directors of the Company's subsidiary entities will continue, working alongside the JPLs as appropriate, to engage with the creditors, employees, other stakeholders and third parties in relation to the business and operations of the Polarcus group," Polarcus said.
As previously reported, creditors last week tool control of Polarcus' subsidiaries that own seismic vessels, with the subsidiaries in question being Polarcus Asima AS, Polarcus Alima AS, Polarcus Amani AS, Polarcus Adira AS, Polarcus Nadia AS, Polarcus Naila AS - bearing the corresponding vessels' names, and Polarcus Shipholding AS. The lenders also replaced the directors of each subsidiary with a nominee of their own.
The lenders, which had previously said they were open to entering into a standstill period which would allow continued operations of the company and awarded projects to be undertaken without disruption, last week changed their mind, and withdrew support for ongoing vessel operation, instructing Polarcus to sail the vessels to safe locations in order to start a sales process.