Rescuing an over-extended
owner in a market slump

01.
The Client Challenge

A Singapore-listed Offshore Support Vessel (OSV) provider, which owned over 30 OSVs, was financially stretched. Like many OSV companies, the owner invested in offshore assets in 2013–2014 when oil prices were high.

The subsequent decline in oil prices left the company with outstanding debt of close to half a billion dollars, plus unsecured bonds. As charter revenue was insufficient to service its debt, the company entered into a Singaporean insolvency scheme that allowed the owner to continue its operations under close court supervision.

02.
The Braemar Solution

Braemar needed to raise capital for the client in a distressed market environment and negotiate with various stakeholders with differing interests and expectations, to ensure the company would not be liquidated.

Acting as the client’s capital-raising advisor, we approached a number of potential financiers and investors. After several rounds of discussions, we identified an investor that saw the upside potential and was willing to commit to the sector.

A number of restructuring options were then evaluated based on their strengths, weaknesses and probability of success. An eventual solution was found on which all stakeholders could agree, including the investor, the company’s management, shareholders, creditors and the court.

03.
The Result

After concluding a successful restructuring, today the company is debt-free. Its OSV fleet was acquired by the investor identified by Braemar, leaving the company responsible for fleet management.

01.
The Client Challenge

A Singapore-listed Offshore Support Vessel (OSV) provider, which owned over 30 OSVs, was financially stretched. Like many OSV companies, the owner invested in offshore assets in 2013–2014 when oil prices were high.

The subsequent decline in oil prices left the company with outstanding debt of close to half a billion dollars, plus unsecured bonds. As charter revenue was insufficient to service its debt, the company entered into a Singaporean insolvency scheme that allowed the owner to continue its operations under close court supervision.

02.
The Braemar Solution

Braemar needed to raise capital for the client in a distressed market environment and negotiate with various stakeholders with differing interests and expectations, to ensure the company would not be liquidated.

Acting as the client’s capital-raising advisor, we approached a number of potential financiers and investors. After several rounds of discussions, we identified an investor that saw the upside potential and was willing to commit to the sector.

A number of restructuring options were then evaluated based on their strengths, weaknesses and probability of success. An eventual solution was found on which all stakeholders could agree, including the investor, the company’s management, shareholders, creditors and the court.

03.
The Result

After concluding a successful restructuring, today the company is debt-free. Its OSV fleet was acquired by the investor identified by Braemar, leaving the company responsible for fleet management.

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The experience is better – speak to one of our advisors today

The experience is better – speak to one of our advisors today