BERGEN, Norway – Ten days after announcing a potential restructure of its debts, Dolphin Group ASA has decided to file for bankruptcy, due to deteriorating market conditions.
“The board of directors of the company has unanimously come to the conclusion that there is no longer a basis for continued operations, and subsequently the assumption of a going concern cannot be upheld,” the company said in a statement. “The company will therefore today file a petition for bankruptcy.”
Dolphin Geophysical simultaneously filed for a petition for bankruptcy.
Chairman Tim Wells and CEO Atle Jacobsen commented: “Due to the continued deterioration in the oil service market Dolphin has had to make the decision to file for bankruptcy. It is a difficult decision, but in light of the unpredictability of the oil price and subsequent spending cuts of our customers, it has become impossible to have the visibility needed to continue our business. We have worked diligently since 2011 to build Dolphin into a company that would benefit all of our stakeholders- shareholders, lenders, suppliers, customers and our employees.”
On Dec. 10, the company said it was having trouble reaching an agreement with its main stakeholders that would allow for a successful completion of its restructuring, noting that its board felt that business could not continue as it was currently. This statement continued by saying that the board of directors was searching for alternative solutions, but that unless a sufficiently acceptable solution can be reached soon, with the relevant stakeholders the company would “have no choice but to file for insolvent liquidation.”
As a consequence of the bankruptcy petition, all trading of Dolphin’s shares and bonds will be halted.
Dolphin Geophysical’s last announced job was in early November, where it said it accepted a letter of award to perform major 3D seismic projects in India.
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