Saevik family-backed Axxis Geo Solutions (AGS) is hoping to seal a restructuring deal with investors including Arne Fredly after it saying on Tuesday that it will file for court protection in Norway.
The Oslo and Houston-based seismic survey vessel owner and charterer said it had been unable to reach agreement with all of its creditors over a voluntary solution to refinance the company.
Financial investors have, however, expressed continued support to invest as part of a reconstruction process, the company added.
The group is led by VLCC owner Hunter Group backer Fredly and Edvin Austbo of Alden, Fredrik Sneve of F2 Funds, Kristian Lundkvist of Middelborg, and Ketil Skorstad of Tigerstaden.
AGS, which has been hit hard in the pandemic, had offered to pay 15% of creditors' debt in January, either in cash or shares, after the investors offered to inject new equity of $15m.
On Tuesday, the company said it had worked on a number of alternatives for a financial restructuring.
Merger proposal
A separate proposal from an unnamed industrial player involving a merger was received in December.
This was conditional on all creditors, except vessel charterer TGS, state finance company Eksportkreditt and trade creditors, accepting a debt to equity swap.
Shareholders would have been left with only 5%.
Then the proposal from the financial investors was received, which needed the agreement of all creditors.
The board backed this alternative and talks with creditors about the plan continue to progress well, with a clear majority of trade creditors and lenders already having accepted it, AGS said.
But AGS said that "unfortunately", one bondholder, holding a majority of the outstanding bonds issued by AGS, has rejected the plan.
The bondholder has instructed bond trustee Nordic Trustee to issue a notice of default and acceleration.
Board rebellion?
The bond investor bought the notes in January and has an ownership stake in the industrial player involved in the merger offer, as well as a seat on the AGS board, the company said.
The only board members who appear to be linked to such "industrial" players are Njal Saevik, chief executive of Havila Shipping, and Eirin Inderberg, head of legal at P&O Maritime's offshore vessel company Topaz Energy and Marine.
The Saevik family's Havila Holding owns 26.44% of AGS.
A court hearing of a bankruptcy petition scheduled for 22 January was earlier postponed following a deal with a creditor.
AGS chief executive Ronny Bohn said in the third-quarter report: "Due to the lack of revenue, we are unable to address our current debt obligations."
In the third quarter, it converted $34.2m of accounts payable into interest-bearing debt.
Total assets stood at $64.4m as of 30 September.
Havila charters
AGS owns one seismic survey ship, the 65-loa Neptune Naiad (built 2002), which is laid up, according to UK shipbroker Clarksons.
Four other source vessels are chartered in, including two from Havila Shipping.
In 2019, AGS listed in Oslo after taking over the listing of Arne Blystad's shell company Songa Bulk.
Songa Bulk had sold its bulker fleet to Star Bulk Carriers the previous year.
Profit for the third quarter was $3.4m, from a loss of $3.6m the year before.
Another Oslo-listed seismic survey shipping company, Polarcus, is fighting for its future after banks took over six of its seven vessels.
