Dolphin Group ASA Files for Bankruptcy as Oil Price Plummets

by San Antonio Attorney

Norwegian seismic surveyor Dolphin Group ASA maps the seabed for oil and gas reservoirs.

Dolphin Group recently filed for bankruptcy as the sharp decline in crude prices has adversely affected a multitude of companies as well.

Based in Oslo, Dolphin Group wasn’t able to comply with an agreement with the bondholders, banks and other financial resources that could restructure its debt and capital structure.  Dolphin will file a petition for bankruptcy on Monday, according to a recent statement.

The company’s stocks have made a big plunge to 0.11 Krone and were even suspended by the Oslo Stock Exchange and Financial Supervisory Authority.

“In light of the unpredictability of the oil price and subsequent spending cuts of our customers, it has become impossible to have the visibility needed to continue our business,” said Chairman Tim Wells and Chief Executive Officer Atle Jacobsen, through a joint statement.

Dolphin Geophysical AS, a subsidiary of the company will also file a petition for bankruptcy with the relevant court, according to a recent statement made by the company.

Since crude prices have decreased by 67 percent the past year, oil companies have slashed expenses thus reducing demand for services and equipment from companies ranging from seismic surveyors to engineering firms and offshore drillers.

Other companies have made the intervention of doing ‘buy-outs’ in order to save their sinking ship.

CGG SA, a French oilfield surveyor made a proposal of creating a sale of new shares that cost 350 million euros ($383 million) last week.  Petroleum Geo-Services ASA earned 920 million kroner ($106 million) as total sale in shares last November.

Polarcus Ltd., another Oslo-listed seismic surveyor, revealed in a statement last week that it is currently in negotiation with banks and bondholders to restructure debt and halted all interest and amortization payments.

Dolphin Group had senior unsecured bonds that accumulated up to 900 million kroner and a market capitalization of 45.7 million kroner at market close last Dec. 11.

 

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