Gulf Oil and Gas accountACCOUNT

Polarcus Addressing Long Term Financing Structure Following Financial Default

Source: www.gulfoilandgas.com 1/26/2021, Location: Middle East

Polarcus has confirmed to the relevant Finance Parties a payment default under its Working Capital Facility Agreement. The Company intends to pursue all available options with a view to ensuring the financial sustainability of the Company and in the meantime will halt all payments of interest and amortization to finance providers.

In light of the sustained economic challenges globally, the Company has been in detailed discussions with its bank lenders to explore financial solutions. During this period, the Lenders consented to the extension of certain financial obligations under the Company’s bank facilities until 25 January 2021 including the obligation to clean down the USD 25 million which had been drawn down from the Group’s Working Capital Facility Agreement ('WCF'). The Lenders have now informed the Company that no further extension will be granted at this time. With the expiration of the previous clean down extension, an event of default has been triggered under the WCF and, in turn, a cross-default of the Group’s other bank facilities and of the Convertible Bond Loan. Agents under the respective facilities have been informed. The Company has not received any notice of debt acceleration.

The Company will continue to engage intensively with all effected finance providers. Nevertheless, there can be no assurance or guarantee that any consensual agreement will be reached or consummated and no formal standstill agreement is in place between the Company and any finance provider.

Commencing shortly after the inception of the COVID-19 pandemic, the Company has taken a number of measures to improve its financial situation. The global organization has been restructured to incorporate a streamlined hemisphere model and the Company’s cost base has been significantly reduced (see press releases dated: 31 March and 22 June, 2020). These efforts together with a consistently high level of project performance has enabled the Company to maintain market share in an extremely challenging market and to achieve a financial position where operations are cash positive before debt service. As of 26 January 2021, the Company’s backlog amounted to approximately USD 130 million.

The Board of Directors will continue to take steps to manage the Company in the interests of all stakeholders and to operate normally in all other respects. In particular, trade creditors will continue to be paid in full and within current agreed payment periods and clients will continue to receive the high project performance standards for which Polarcus has become recognised over the past decade.

Polarcus has retained ABG Sundal Collier as financial advisor and Wiersholm and Walkers as legal advisors to assist the Company in its process to address the contemplated restructuring of the Company’s balance sheet.

Financials and Investment News in United Arab Emirates >>

Botswana >>  3/1/2021 - Tlou Energy Limited is focused on delivering cleaner electricity in Botswana and southern Africa using gas and solar power. The Company's first propos...
Brazil >>  3/1/2021 - Last week, Petrobras received approximately R $ 360 million (US $ 65 million) as a result of a leniency agreement signed by Samsung Heavy Industries. ...

Spain >>  3/1/2021 - Prospex Energy PLC, the AIM quoted investment company focused on European gas and power projects, is pleased to announce the completion of the acquisi...
United Kingdom >>  3/1/2021 - Diversified Gas & Oil PLC (DGOC) announces the vesting of Restricted Stock Units ("RSUs") issued under its equity incentive plan (the "Plan") to membe...

Israel >>  2/28/2021 - Energean PLC (Energean) (ENOG) is pleased to announce that its subsidiary, Energean Israel Finance Ltd. intends to offer US$2.5 billion aggregate prin...
Malaysia >>  2/26/2021 - Sapura Energy Berhad (“Sapura Energy”) a leading global integrated oil and gas services and solutions provider, announced that it has signed an Islami...




United Arab Emirates Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 |

More News

Related Links

Gulf Oil and Gas
Copyright © 2020 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.