Deloitte called in to help struggling MMA Offshore
MMA Offshore has hired financial services firm Deloitte to help it through its challenges with lenders, which have triggered a raft of asset sales at a time of low oil prices.
The company has been on the radar of hedge funds since it failed to meet its debt obligations, but now appears to have put the worst behind it.
Earlier this year MMA announced it had reached a deal to pay only the interest on its loans for the short term until it could improve its position through fleet sales.
It made a $45 million principal repayment on June 30 after selling its Dampier Supply Base to Toll Group for $44.1m and it extended its loan term for six months until September 2019.
So far, at least 19 vessels have been sold for $55m.
The ASX-listed MMA Offshore has about 30 vessels. It supplies and maintains oil rigs and their offshore infrastructure.
About a third of its business is based off the coast of Western Australia, with the rest in Southeast Asia and the Middle East — operations it acquired through its Jaya acquisition.
There has been a global services glut since the oil price collapsed and most companies in the sector have had financial challenges.
Exploration has been halved and oil rigs taken out of action.
One of the world’s major players, Tidewater, was placed in Chapter 11 bankruptcy in the US and Norwegian groups Farstad and Solstad have recently been through a restructure/merger.
Meanwhile, subsidiaries of Rivet — formerly McAleese Transport — were placed in voluntary administration and receivership last month.
Logistics arm ARX Group and heavy haulage division Rivet Mining Services are in the hands of McGrath Nicol as receiver and BRI Ferrier as voluntary administrator.
The energy division of Rivet and Rivet Mining Services West remain in operation.
It is understood owners thought the divisions would be more valuable in liquidation.
Chief executive and founder Mark Rowsthorn initially invested $100m into the business, but no longer owns any equity, with the business controlled by its lenders, largely from Asia.
