Dof chairman and major shareholder Helge Mogster is stepping down as the company prepares for a major refinancing in the new offshore shipping slump.
The Norwegian OSV company, hit by the effects of the oil price crash and coronavirus restrictions, is proposing director Hans Olav Lindal as the new chairman.
Mogster, who owns 48.95% of the group, said he will resign at the shareholders meeting on 28 May.
He has been in the chair for 18 years, but will also step down as chairman of subsidiary Dof Subsea.
Lawyer Lindal will take over at a "very challenging" time, Dof said, with "extensive and comprehensive processes" being carried out related to the refinancing of the group.
"This will be demanding for the board of directors and the management, and will involve other and extensive requirements," the company added.
"Lindal has extensive experience and competence corresponding well to these challenges, and it is considered to be in the best interests of the company and shareholders that he will be leading the board of directors through this phase."
The company said Mogster will still be heavily engaged in the business, and will focus his efforts on his ownership role.
Lawyer's expertise
Thommessen lawyer Lindal joined the board last year.
He works mainly with mergers and acquisitions and legal matters related to shipping, and assists shipowners and other clients with matters concerning contract law, corporate law and financing.
Lindal also has board experience at shipowners Viken Shipping, Gearbulk, GC Rieber Shipping and G2Ocean, as well as Wallem Group and the Norwegian Hull Club.
Lindal and Dof have been contacted for further comment.
Meanwhile, Dof said there has been a sharp decline in tender activities in the offshore market, with few projects offering new bidding opportunities.
"Due to the sharp decline in the oil price, the oil companies have reduced their exploration activity substantially and some have also started to reduce existing production," the company said.
Dof is expecting to continue to experience adverse consequences.
Several of the group's vessels will finish their firm contract periods during 2020, and if the challenging market continues most of these vessels could move into lay-up, it added.
Contract win for Dof
Nonetheless, Dof has agreed a new charter with Equinor Energy for the 353-bhp anchor-handling tug supply vessel Skandi Vega (built 2010).
This lasts for six months, with up to six months of options.
Equinor has an option to change the contract to a two-year or three-year firm period within the next four months.
"It is currently too early to express any view on the expected Ebitda for 2020 in light of the changed environment," the group said.
Earlier this month Dof was forced to ask for more help from banks and bondholders as its cash position deteriorated.
The company was already trying to push through a refinancing plan with creditors that had envisioned injections of NOK 700m ($67m) in new equity while stretching bond maturities.
If this cannot clinched by 30 April, bondholder approval will lapse, meaning interest payments will fall due in April and May.
Dof had said it was requesting a general standstill of payment of all interest and instalments from its secured lenders and other financial creditors.
The Storebo-headquartered company is also seeking emergency loans.
Bondholders approve freeze
Bondholders have approved a standstill in three issues worth a combined NOK 1.58bn, potentially to 31 January.
Domestic rival Solstad Offshore has sealed a preliminary agreement to swap $946m of debt for equity and sell 37 ships, while Siem Offshore pushed back repayments on $1bn of debt to avoid a cash crunch, and Havila Shipping has agreed a $420m refinancing.
Dof's net loss in the final quarter of 2019 was NOK 512m against NOK 774m in the same period of 2018.
