#BelfastLough - Fred. Olsen Energy, the Norwegian drillship,rig operator and owners of the yard that built RMS Titanic, is considering a debt and equity restructuring that would almost wipe out the value of its current shares, the company said.
With debt and liabilities of more than $840 million at the end of June, Reuters reports that Fred. Olsen last month stopped paying its creditors to preserve liquidity, making it the latest victim of a slow recovery in the oil and gas exploration sector.
The owner of seven drillships and rigs, as well as Belfast’s Harland & Wolff yard, has now received indicative, non-binding proposals from equity investors valuing its current shares and bonds at just $10 million, it said in a statement.
The company’s largest owner, Bonheur, which holds a 51.9 percent stake, separately said it had not decided whether to take part in the proposed refinancing.
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