Jacques de Chateauvieux’s Bourbon remains positive about finding a solution with its lenders following a breach of loan covenants.
Bourbon, which is selling over 40 ships as part of a wider restructuring, today reported a loss of EUR 576.3m ($712.6m) for 2017.
The shipowner said it was no longer in compliance with various loan covenants and EUR 1.12bn of debt had been reclassified under current liabilities.
Bourbon noted its lenders had not requested repayment and discussions were ongoing following the shipowner’s request to postpone repayments.
“To date, the group is still waiting for several replies, but is confident that it will obtain these agreements for postponement,” Bourbon said.
“The group has therefore decided to enter into further discussions with its lenders, both in France and abroad, to balance the servicing of its debt with the expected gradual market recovery and the corresponding upturn in the group’s performance.
“This situation raises a material uncertainty with regards to the going concern, the company is however confident in its ability to find a balanced solution with its lenders – often long-standing partners – that suits all parties and allows the company to adapt its financing to its future development.”
Downturn, strike three
The update came as Bourbon announced an annual loss with numbers which it said reflected the third year of a cyclical downturn in the offshore market.
Cost cuts helped the company raise free cash flow to EUR 127.8m, more than double the previous year. However, it carried an EUR 277m impairment charge on assets on its way to a bottom line loss.
Last month Bourbon put 41 platform supply vessels (PSVs) up for sale as it restructures as part of a new strategy under the banner Bourbon in Motion.
Chief executive Gael Bodenes said: "As the market cycle has bottomed out, Bourbon must focus more than ever on operational excellence, fleet utilisation rates, cost reduction program and free cash flow preservation.
The group will be split into three distinct affiliates: Bourbon Marine & Logistics, Bourbon Subsea Services and Bourbon Mobility.
Bodenes is new to the chief executive’s role after a change in corporate governance which called for the company to separate the chairman and chief executive positions.
de Chateauvieux remains as chairman with Astrid de Breon as chief financial officer.
