New York-listed Hermitage Offshore Services has filed for reorganisation under Chapter 11 of the US bankruptcy code after failing to come to terms with its lenders following a series of forbearance agreements.

"While the company would have preferred to complete its financial restructuring out of court, it was unable to reach a consensual agreement with its lenders, which made filing Chapter 11 necessary to provide a single forum for all continuing conversations with its lenders," Hermitage said in a release late on Tuesday.

Hermitage said it made the filing in US bankruptcy court in New York "following a prolonged slump in global oil prices, driven in part by the global coronavirus pandemic and its effect on the company's business".

The Scorpio Group-backed company said it anticipates business operations and relationships with customers will not be hurt by the proceeding "while it works constructively with its lenders toward a consensual resolution".

Hermitage added: "... the company values the business of its customers and vendors and is committed to continuing its long-standing business relationships with them uninterrupted as it works through this process."

On 9 July, Hermitage announced a forbearance agreement with DNB Bank and SEB, in which the banks agreed not to exercise any of their rights under the loan agreements until the end of the month.

On 3 August, the company announced that agreement had been extended until 10 August.

The company said it had retained Parella Weinberg Partners and Snapdragon Advisory as financial advisors and Proskauer Rose as legal counsel as it explores options.

Hermitage had announced earlier on Tuesday that it sold off two anchor handling tug supply vessels that released $9m in obligations with DVB Bank.

The Scorpio Group took control of the company, then Nordic American Offshore, from Herbjorn Hansson in December 2018.

Like much of the offshore sector, Hermitage has felt significant impacts from the coronavirus outbreak and rock-bottom oil prices during a year in which observers expected a recovery after a multi-year downturn caused by the latest oil price collapse.

Hermitage owns 21 vessels consisting of 10 platform supply vessels, or PSVs, and 11 crew boats. The company’s vessels primarily operate in the North Sea and the west coast of Africa.