Danish OSV owner Blue Star Line has filed for bankruptcy after two vessel charters were cancelled.
The Faaborg company, which has eight ships, was also hurt by the offshore shipping slowdown, which has seen five units idled or laid up.
Tom Hald, director and principal shareholder, said in a statement cited by Maritime Denmark: "A really bad year in 2017 [was] followed by a poor result in 2018, which unfortunately has continued into 2019.
"The activity level has generally been less than desired, but two cancelled orders and non-payment from debtors have meant that we have the prospect of having lost our equity, and for liquidity reasons, we cannot defend continuing operations."
The fleet consists of four anchor-handlers built between 1981 and 1998, three platform supply vessels (PSVs) built between 1983 and 1990, and an anti-pollution unit.
VesselsValue assesses the PSVs and anchor-handlers as worth only $5.06m combined.
No choice for Blue Star
Hald added: “It deeply affects us that bankruptcy has consequences for many of our loyal employees and for a number of creditors and other long-term partners.
"We have until the very last belief that the company could continue, but the cancellation of two charter agreements has removed the basis for continued operation, and we have therefore filed for bankruptcy before the consequences for our suppliers became incalculable."
According to Fyens.dk, the company was the port of Faaborg's biggest client, accounting for DKK 1m ($150,000) of its annual DKK 8m turnover.
Blue Star has been contacted for further comment.
