Views on MCE?, page-32

The entire OSV industry (MCE's customers) seems to have commenced an en masse recapitalisation, basically involving wiping out existing equity and converting debt to equity - the following operators have gone into chapter 11: Ocean Rig (28 March), Gulfmark (16 May), and Tidewater (12 May). Then, there are those OSV operators that haven't yet filed for bankruptcy but are working toward it, such as Seadrill (https://www.bloomberg.com/news/arti...ings-beat-estimates-as-dibowitz-named-new-ceo), Pacific Drilling etc.

I see this is a healthy and necessary development for MCE. It doesn't change the fact that the OSV market is still enormously oversupplied and day rates (and therefore profitability) still at multi-decade lows, nor does it change the fact that the newbuild market will remain dormant for the foreseeable future, but it places MCE's customers on a much sounder financial footing such that they at least have the ability to reinvest in their fleets again (i.e. perhaps buy some fancy new buoyancy systems).