Sevan Marine (OSE: SEVAN) is crashing again as the company updated on long-term debt solution plans and gave a financial update. Sevan Marine says it is continuing a dialogue with bondholders for balance sheet restructuring. The current presumption is that the end result will be to turn debt into equity and thus substantially diluting current stock owners. Additionally the company is planning a capital raise.
Regarding financial situation, the company said that the “financial situation remains challenging”. Secured bonds presumably face interest rate and payment schedule revisions. There is a significant short term liquidity pressure. Company also said there will be additional costs of around 25-35 million to be incurred from FPSO Sevan Voyageur upgrade project. The stock has retreated around 20% today so far.
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