Oslo-listed gas carrier company IM Skaugen (IMS) has filed for court protection in Singapore as it seeks to reorganise its debt and business.
The application at the Singapore high court automatically grants a 30-day shield from creditors' claims.
In the weeks to come, it will seek approval from the Singapore court to extend the moratorium, it said.
"The moratorium will provide much-needed space and time for the IMS scheme companies to complete their business transformation from seaborne transportation of LPG/petrochemicals to regional distribution of LNG through its unique fast-track, low-capex small-scale LNG concepts (SSLNG)," it added.
IMS will also target areas for growth and pursue new business opportunities, while focusing on the ongoing discussions with strategic investors.
Debt to be paid in full
It presented a restructuring plan on 4 April that had support from most of its stakeholders.
The company said the scheme, if implemented, envisages paying its liabilities in full with its upcoming cash flow matching an amended amortisation schedule of its liabilities.
An application will be filed to start a scheme of arrangement to reorganise the group.
"We are confident that the process will lead to a reinvigoration of the IMS Group and it will assist us to generate significant cash flow for the benefit of all stakeholders," it said.
It continues to pursue SSLNG opportunities, via Norgas Carriers and Somargas, which it has kept outside the court process.
"The IMS Group is committed to the clients and key stakeholders built over the years and will, in the spirit of corporate transparency, seek their opinions throughout the reorganisation to achieve a swift and collaborative outcome amidst these trying times," it said.
TradeWinds reported earlier this month that Norwegian shipowner Morits Skaugen junior's business was about to make a new start.
The reshaped company, which was listed in Oslo in 1990, will be back under private ownership, with the 62-year-old holding a smaller slice.
Norgas Carriers will take over the activities of IM Skaugen and its fleet of seven gas carriers.
Fellow Norwegian Christen Sveaas is injecting $3m in fresh equity via his Kistefos vehicle and the Skaugen family could see its stake reduced to less than 10% from 36%.
Oslo-based IM Skaugen has negative equity and has not yet reported results for 2017.
The key question for the company is whether a 10-year contract for LNG transport will be finalised.
In January last year, IM Skaugen announced the $420m deal to employ three of its ships with LNG capacity.
However, a pact with Endeavor Energy to serve the Ghana 1000 power project at Aboadze has dragged on. Shipping observers in Oslo say the future of the company depends on this contract.
Further pressure has come as Skaugen's operated fleet of LPG carriers was halved last year after partner Teekay pulled its vessels out of a pooling agreement.
For IM Skaugen, the decline has been dramatic. In the 1980s, it expanded enormously, under the leadership of Morits Skaugen senior, notably with the purchase of another tradition-rich Norwegian company, Kosmos, in 1988.
Morits Skaugen senior and his brother split the company in the 1980s, when it had a value of more than NOK 3bn ($350m).
Younger generation
The younger generation took over in 1992, with a highly diversified fleet of 72 ships. Morits Skaugen Jnr and his three sisters divided the company three ways into NOK 1.6bn stakes.
The market collapse in the 1990s with Saddam Hussein’s invasion of Kuwait, and the subsequent Gulf War hit the company hard.
