A plan by owner Jacques de Chateauvieux and his family to save his restructuring offshore support vessel (OSV) owner Bourbon has been thwarted by creditor ICBC Financial Leasing.
A takeover by banks now looks the likely option, with the French family set to lose control of the shipowner, which has more than 400 vessels.
Holding company Bourbon Corp and subsidiary Bourbon Maritime had been the subject of four takeover offers as part of its reorganisation proceedings at Marseilles commercial court, which has now evaluated all of them.
A decision will be made on 23 December.
Bourbon said the offer submitted by de Chateauvieux could not be examined because China's ICBC Financial Leasing refused to discuss a possible agreement, which was a condition of any deal.
Other offers, from French logistics group Peschaud and US offshore vessel owner Tidewater, were not presented at the hearing.
ICBC backs French banks
ICBC is backing Bourbon's French lenders, who have 75% of the debt and what appears to be the only plan left standing.
A source close to the lenders told TradeWinds that neither ICBC Leasing nor the French banks have had discussions with De Chateauvieux since Bourbon halted debt repayments in April 2018.
ICBC is linked to the other banks in terms of their offer, so the Chinese company working with De Chateauvieux did not make sense, the source added.
The French banks are represented in court by their company Societe Phoceenne de Participation (SPP), which wants to acquire 100% of the Bourbon group, converting €1.4bn ($1.55bn) of debt into equity and another €300m into bonds issued by SPP.
Their plan also includes €150m in new bank financing, of which €30m can be released as soon as the transfer of ownership is completed to meet immediate liquidity needs.
The lenders will follow Bourbon's own "Bourbon in Motion" efficiency plan.
The banks are BNP Paribas, Caisse Regionale de Credit Agricole Mutuel Alpes Provence, Caisse Regionale de Credit Agricole Mutuel de Paris et d’Ile de France, Credit Mutuel Equity SCR, Credit Lyonnais, Natixis and Societe Generale.
Bourbon Corp to be liquidated
"If this offer were accepted, Bourbon Corporation would be liquidated, leading to a total loss notably for the shareholders and bondholders." Bourbon said.
But SPP told the court that the offer represents continuation for the company.
"In terms of governance, the SPP’s proposition would be to provide the company with a supervisory board composed of eight to 10 members representing the banks and industry experts," Bourbon added.
Gael Bodenes would become chairman and chief financial officer Thierry Hochoa would also sit on the board.
Bodenes is listed as the current CEO on Bourbon's website, but in the company's latest statement, De Chateauvieux is described as CEO and chairman.
Staying in France
De Chateauvieux said the banks' deal "would make Bourbon Maritime's new shareholders responsible for the recovery of a French company, which is still the world leader in offshore oil and gas marine services, its future development and the preservation of its decision-making centres in France.”
In July, Bourbon said it was seeking a reorganisation process in court after ICBC Leasing signalled it would demand repayment of its debts.
The offshore vessel owner added that 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 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.
In June, Bourbon said it was working on securing €80m in new debt and a €164m loan to pay off lenders looking to exit.