On on
05.02.2015 bankruptcy/liquidation
order has been made by BERGEN District Court for the estate of:
REEF SUBSEA AS (Case no.:15-021068KON-BBYR/03).
Problems came to a head as following the HV V Golf companies defaults on
debt obligations made public after a stock exchange notice from GC Rieber
Shipping ASA, January 28. 2014, regarding the sale of GC Rieber Shipping's
shares in Reef Subsea AS to HV V Invest Golf AS and HV V Invest Golf II
AS, two companies owned by the private equity fund HitecVision V, LP.
The transaction included the provision of a seller's credit, inclusive
of provided guarantees, of NOK 180 million (approx. EUR 21 million) to
the two HV V Golf companies. In addition, accrued interests on the seller`s
credit amount to NOK 10 million (approx. EUR 1.16 million). The HV V Golf
companies did not fulfil the obligations related to the seller's credit
and this became due and payable. Further, GC Rieber Shipping has reasons
to believe that the HV V Golf companies will not fulfill the terms of the
agreement.
On this basis GC Rieber Shipping sent a
notice of default to the two HV V Golf companies. As these two entities
own the company and group Reef Subsea AS, it is GC Rieber Shipping's opinion
that there may be significant risk related to GC Rieber Shipping's outstanding
receivables for the charter of vessels to subsidiaries of Reef Subsea.
The outstanding receivables amount to NOK 45 million (approx. EUR 5.2 million).
GC Rieber Shipping stated they will seek
to recover amounts due through established collateral in Reef Subsea AS,
however as predicted HV V Golf companies went on to file for bankruptcy
Reference was made to the stock exchange notice from GC Rieber Shipping
ASA, February 4. 2015, regarding the default on debt obligations by HV
V Invest Golf AS and HV V Invest Golf II AS, two companies owned by the
private equity fund HitecVision V, LP.
GC Rieber Shipping were made aware that
HV V Invest Golf AS and HV V Invest Golf II AS have been declared bankrupt.
Further information will be provided at
latest at the release of the 4Q14 report scheduled for February 18.
The first meeting
of the Reef Subsea AS creditors
will be held on 16.04.2015 10:30 at BERGEN District Court,
rettssal 2 C, 2. etasje, Bergen tinghus, Tårnplass 2, Bergen.
The status and fate of the UK entities such as Reef Subsea (UK) are still
questionable. Towards the end of last year a new company was set
up in Bergen, Norway called Reef Subsea Norway AS.
Back in July 2014 Reef Subsea
announced a change in its ownership structure with Norwegian
private equity firm, HitecVision
who acquired all of the shares of GC Rieber Shipping. HitecVision
in a £15.2m deal. At
that time the plan was to grow Reef Subsea into a provider of integrated
services including subsea construction & IMR, installation and trenching
of cables and umbilical’s, and seabed dredging & excavation services.
GC Rieber Shipping remained
as a Reef Subsea supplier. Duncan MacPherson, Chief Executive Officer,
commented at that time: “The team at Reef Subsea are very pleased to have
HitecVision as main shareholder.
Reef Subsea was established
to provide subsea services to the oil & gas, offshore renewables, power
and telecommunications industries having operations in Norway, UK, Europe,
West Africa, Singapore, the Middle East and the USA.
The flexible product installation (cable, flexible pipes, trenching and
burying etc.) business has proved the undoing for many organisations as
set-up costs are extremely high, and the risk portfolio also is high.
Recent years have seen the demise of Subocean, the withdrawal of Technip,
and the selling off by Global Marine leaving competition limited to a very
select few with any real experience.
