GC Rieber Not Getting Paid for Reef Subsea Sale

GC Rieber Shipping ASA said that The HV V Golf companies have not fulfilled the obligations related to the seller’s credit, regarding the sale of the company’s shares in Reef Subsea.

Namely, after Reef Subsea had a significant negative result in the fourth quarter 2013, on January 28 2014, the Norwegian offshore/shipping company entered into an agreement to sell its stake in Reef Subsea AS to HV V Invest Golf AS and HV V Invest Golf II AS, two investment companies of the private equity fund HitecVision V, LP.

According to GC Rieber, the transaction included the provision of a seller’s credit, inclusive of provided guarantees, of 180 million Norwegian crowns to the two HV V Golf companies. In addition, accrued interests on the seller`s credit amount to NOK 10 million.

However, the company announced today that HV V Golf companies failed to fulfill its obligations related to the seller’s credit and this has now become due and payable.

GC Rieber Shipping has reasons to believe that the HV V Golf companies will not fulfill the terms of the agreement.

Furthermore, GC Rieber Shipping has sent a notice of default to the two HV V Golf companies.

“As these two entities own the company and group Reef Subsea AS, it is GC Rieber Shipping’s opinion that there may be significant risk related to GC Rieber Shipping’s outstanding receivables for the charter of vessels to subsidiaries of Reef Subsea. The outstanding receivables amount to NOK 45 million,” the company said in a statement.

In addition, GC Rieber Shipping said it will seek to recover amounts due through established collateral in Reef Subsea AS.

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