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Ship Operator Toisa Files for Bankruptcy January 30, 2017 by Reuters PrivacyBadger has replaced this AddThis button. File photo: Toisa Shipping File photo: Toisa Shipping ReutersBy Tom Hals WILMINGTON, Del., Jan 30 (Reuters) – Shipping company Toisa Ltd filed for U.S. Chapter 11 bankruptcy as falling demand for the Bermuda-chartered company’s oil-and-gas supply vessels left it running short of cash, according to court documents. Toisa, owned by Greek shipping magnate Gregory Callimanopulos, has a global fleet of 26 offshore oil service vessels, 13 tankers and seven bulk ships, according to documents filed with the U.S. Bankruptcy Court in Manhattan. The ship operator said it had more than $1 billion in debt in court documents. Oil prices have fallen by about half since 2014, and offshore energy producers have responded by cutting back on capital spending which has undermined demand for supply vessels. Toisa said it has been in talks with lenders this month in London, but sought bankruptcy after several lenders took action on their loans, including seeking to seize the company’s ships, according to court documents. The energy downturn has hit many offshore oil service firms, including Houston-based Hercules Offshore Inc which in June said it planned to liquidate its drilling business. Tidewater Inc, a New Orleans-based operator of supply vessels, has been in negotiations for several months with its lenders to amend it debt agreements. (Reporting by Tom Hals in Wilmington, Delaware; Editing by Chizu Nomiyama) (c) Copyright Thomson Reuters 2017

Statoil Scoops Up Nine AHTS and Four PSVs for Work Offshore Norway January 27, 2017 by gCaptain PrivacyBadger has replaced this AddThis button. One of the vessels is the AHTS KL Sandefjord. Photo: Vard One of the vessels is the AHTS KL Sandefjord. Photo: Vard Statoil Petroleum AS has chartered thirteen vessels, including 9 AHTS and 4 PSVs, for work offshore Norway as the company boosts its exploration activities for the first time since 2013. According to data compiled by Norwegian shipbroker Westshore.no, Statoil Petroleum AS secured charters for the vessels on Thursday for work offshore Norway. Earlier this month Statoil announced it would increasing exploration for the first time in years due to falling costs. The company plans about 30 exploration wells as an operator or partner in 2017, up from 23 last year, including as many as 18 wells which will be drilled off Norway. Statoil said its plans include five to seven wells in the Barents Sea, where it hasn’t explored since 2014. Despite Statoil plans, the offshore oil services industry likely faces another tough year in 2017. According to Westshore, there are currently 47 AHTSs and 100 PSVs still in lay-up in Norway and the UK. PSV utlization is currently at 83%, while AHTS utilization is just 35%, Westshore figures show.

Reply from AnnA Technically, Transaction “B” is comprised of the following: Receipt of: · New cash - $10.5 million · Vessels and equipment - $6.1 million (fair market value as appraised) in exchange for discounted convertible notes with a fair market value (as appraised) of $16.6 million (nominal value of $31.6 million). No cash outlay on the convertible notes (10, 12 and 15 year terms) with the exception of interest on the Series A Notes. The Transaction “A” is comprised of the following: Receipt of: · Vessels - $8 million (fair market value as appraised) in exchange for $8 million of forgiveness of the principal amount of the Everest Loan Note. The contingent consideration element is only payable out of future net cash flows over the next 18-month period, if earned.

Reply from me; Yes the transaction does bring in $10.5m of new capital however It is at a cost of $32m and forgoing a loan of $8m so almost $40m If it was it was brining in $40m of cash at a cost of $10m then I would agree but it is not the case

The required process of completing and filing the admission document is rigorous and involves not just the Company and its Directors but also the review and consent of the Company’s nominated adviser (finnCap), the Company’s auditors (RSM) and the Company’s solicitors (Norton Rose). Subsequent to this process, the transaction also must be presented to the shareholders for approval. The terms of the convertible notes to be issued to the Sellers (upon approval of the shareholders) allowed the fair market value of the notes to be heavily discounted (as compared to their nominal value). The Company and its Directors had these convertible notes (and their fair market value) appraised by a third-party accounting firm. This transaction will bring in $10.5 million of new capital cash to the Company for use in future acquisitions. The convertible notes do not require any cash outlay for interest or principal payments (with the exception of the Series A Notes for interest) upon conversion or redemption