Nordic Trustee ASA and Harkand Finance Inc. have exercised their rights to terminate the internal bareboat charters for the dive support vessels Harkand Da Vinci and Harkand Atlantis.
The two vessels were scheduled to deliver subsea support services for Maersk Oil’s Flyndre development.
Nordic Trustee is acting as bond trustee for the bond issue where Harkand Finance Inc. is the issuer. In 2014, Harkand completed a USD 230 million senior secured bond issue with maturity in 2019 used to finance (in part) the purchase price of the vessels.
In March this year, Nordic Trustee has exercised its rights to replace Harkand’s board of directors and its two subsidiaries Harkand Atlantis Inc. and Harkand Da Vinci Inc. after its bonds had been declared to be in default.
Later that month, Harkand informed that interest payment which was due March 28, 2016 will not be paid due to insufficient liquidity.
Nordic Trustee said it has for now not declared the bonds to be due for immediate payment.
In an email statement for Subsea World News, Harkand’s chief executive officer, John Reed, said: “Market conditions within the global oil and gas industry remain extremely challenging. Harkand is taking proactive steps to secure its financial position in order to emerge from the downturn with a robust global business.
“We are working closely with our investors and financial institutions in order to provide a sustainable platform from which to develop the company and continue with our strategic growth plans.”