Time to off-load this Mermaid, page-7

Upon reflection, I am thinking that MRMs MD and the entire board have their bags packed.

No doubt the MD will receive a final and very nice one off payment to say goodbye. The Board I suspect will be glad to get away from this company and are in damage limitation mode.

Reflecting upon the AGM, reading between the lines, there is certainly something going on in the background they were not able to talk about.

So can only speculate as to what that is.... Perhaps could it be the offshore accumulators are soon to take control?

IMO the current MD and board must now go. These guys capital raised and geared up with debt at the top of the market based upon a bonus structure that rewarded themselves very well if was to work out with the Jaya buy and new build program. However this motley crew didn't look at supply and demand dynamics (a basic thing) and understand if prices are high everyone chases it and then oversupply comes... Why are the current crew that got MRM in to this trouble still in control?

From my research (from US based operators whom seems to operate under a much better disclosure regime, and dare I suggest a better regime in relation to declared asset values) the OSV market will remain significantly oversupplied for no less then 2 years from now (and it could be much longer). This means that cash generation from operations is extremely difficult and given that MRM is in a commitment to pay back their bank syndicate more than they could make from operations. Selling boats isn't really a bankable option given no operator want to buy a boat just to stack it (tho you might get lucky now and again with a sale). But even if they get through the upcoming bank debt payment , how are they going to survive the next couple of years?

This all begs the question why did they buy so many boats from Jaya at the top of the market? Perhaps that suggests that the smart guys were the guys that sold, not the guys that brought.

I think we might see those smart guys take over MRM lock and stock pretty soon.

All IMO only.... Please do your own research as well.