Gulfmarks MD in their latest earnings call they think he...

Gulfmarks MD in their latest earnings call they think he downturn will be around for at least 3 years.

During this period all that us happening in the most hopefull of conditions is a cash breakeven position. That means no money for equipment maintain and absolutely no money for equity holders. Basically the industry is running their boats into the ground just to stay cash breakeven.

As an idea of the true value of boats in their latest earnings call Gulfmark sold one vessel (prior to quarter end, another 2 cheapies were sold post 30/6). The sale pre June was at less than 20 percent of book value and Gulfmarks management were quite positive about the sale given it generated cash. Gulfmark have sustainable banking covenants for a year or 2 at least.

For MRM, their situation must be worse. It is alas only a matter of time till their cash position becomes unbearable. No bank will be patient for the needed 2 or 3 or more years from where we are now in what will be worsening conditions and therefore some sort of significant capital raise or debt for equity transaction is all but inevitable.