The New York Stock Exchange is starting the process of delisting offshore supply vessel owner Hermitage Offshore Services after the owner filed Chapter 11 bankruptcy papers late Tuesday.
Hermitage revealed the NYSE decision, which is routine when companies have made a bankruptcy filing, in a securities disclosure Wednesday.
Hermitage has the right to request a review of the measure within 10 days. The NYSE will come forward with a date for suspension of ticker symbol "PSV" if Hermitage does not seek review within that time.
Hermitage shares had closed at $0.80 Tuesday night before the Scorpio Group-backed owner disclosed its filing for court protection and reorgnisation.
The stock was down 30% to $0.56 in Wednesday afternoon trading on the NYSE. In practice, common shareholders often come away with zero recovery in Chapter 11 cases.
Three Scorpio private entities are the largest holder of the stock, combining for a stake near 66%.
The share had ranged from a high of $3.05 to a low of $0.31 over the last year.
Emanuele Lauro-led Hermitage filed for protection after failing to come to terms with its lenders following a pair 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 owner's largest creditors are lenders DNB and SEB with a combined $133m in debt.
Hermitage owns 11 platform supply vessels and 10 workboats.
