France's Bourbon Corp is seeking a reorganisation process in court after China's ICBC Leasing signalled it would demand repayment of its debts.
The offshore support vessel owner said the Chinese company had sent a series of letters on 18 July expressing its intention to request settlement of all "rental payments" up to 2026, under a guarantee awarded to it by Bourbon.
Bourbon said that because it was not in a "state of cessation of payments", it had requested a safeguard procedure in court.
But the Commercial Court of Marseilles rejected this bid, considering that the guarantees activated by the Chinese company were proof that Bourbon was "insolvent" as of 24 July.
Bourbon then made the reorganisation request.
Operations as normal
This process will only concern holding company Bourbon Corp and not the operating companies, which will be able to continue their normal operations.
The aim is to preserve the group's operating activities in order to "actively participate in the emerging recovery of a profoundly changing market", it said.
The demand from ICBC Leasing was made despite the ongoing amicable negotiations on the financial restructuring of the group's bank and lease debt, it added.
Last week, the company requested a suspension of its shares after creditors sought repayment of $800m in debt.
Following a shareholders' meeting on 28 June, the shipowner had proposed two options to meet its commitments.
The first was to share market risk, with creditors receiving a reduced fixed part along with a variable part dependent on the net cash generated per vessel provided as guarantee for loans or leased property.
The second was to take on the company's risk and agree a debt haircut over eight years, in return for stock.
This would "give access" to up to 30% of the company's shares.
Guarantees provided
Bourbon said it had offered ICBC Leasing a cash payment equal to the amount it requested as part of the bank offer they were part of.
It said ICBC Leasing, Minsheng Leasing and the Export-Import Bank of China are the only creditors to benefit from a company guarantee.
Share trading will resume on 26 July.
French reorganisation proceedings freeze liabilities for up to 18 months so that a plan can be presented. This scheme of restructuring can last for up to 10 years.
Last month, Bourbon said it was working on securing €80m ($91m) in new debt and a €164m loan to pay off lenders looking to exit.
The company has taken five platform supply vessels out of lay-up, alongside an unspecified number of crewboats.
