Aker Rejects Rem Offshore Restructuring Plan

Cancelled Vard 206 OCV

Norwegian vessels owner, Rem Offshore, has not secured backing for its refinancing plan after the bondholders controlling more than 1/3 of the bonds in the company’s REM04PRO bond issue turned down its proposal.

Namely, the industrial investment company, Aker, which earlier this year invested around NOK 500 million in another Norwegian offshore vessels provider, Solstad, has blocked the financial restructuring of the Fosnavåg-based company.

“REM Offshore needs to participate in the consolidation of the industry, which is why we chose to vote against the proposed restructuring plan at the company’s bondholders meeting on 18 July, when our alternative proposal was rejected by REM Offshore,” said Øyvind Eriksen president and CEO of Aker.

Reportedly, Aker’s proposal involves a merger of Solstad and Rem Offshore, which the company believes is necessary in order to reshape the market for offshore service vessels.

Tough market conditions have also recently lead to termination of the shipbuilding contract Rem Offshore had with Vard for one offshore construction and anchor handling vessel.

“Aker will, together with Solstad, pursue our efforts to find an industrial solution for REM Offshore in the best interest of creditors and other relevant stakeholders,” Eriksen added.

Rem has postponed the extraordinary general meeting, scheduled to be held on July 21, 2016, and said it will begin discussions with the various stakeholders of the company, including its creditors to find a solution for going forward.

Subsea World News Staff

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