Time to off-load this Mermaid, page-58

oh dear ......

ask:

1. how can a global oil company "not pay its bills" re write-off on recievables ........this "smells of" how to give a discount to a large customer so as not to loose a contract .......
2. what sort of $$$$ do you think the company needs to hold to pay for staff / op costs / inventory / holding costs of excess assets (my rough est is around 15-20m +/-)
3. these muppets will run out of cash in abt 3 weeks ..........

"

​

In response to the difficult trading conditions experienced during the past year, in February 2016 the Company agreed a number of amendments to the terms and financial covenants of its Syndicated Loan Facility with the members of the Syndicate. On 24 August 2016, the Company received approval of some further amendments to the terms and financial covenants of the Facility and committed to an increase in the annual principal repayments over the remaining term of the Facility to $75 million, payable in six month instalments of $37.5 million, with the first payment due on 31 December 2016.

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The principal repayments will be funded from the proceeds of the

​

Company’s ongoing vessel sales programme, operating earnings and any additional funding options available to the Company




at 30 june:
Cash at Bank $49.7m

one vessel sold since then (

The “Installer 10” Accommodation Barge was recently contracted for sale
and is currently being delivered to the Middle East, with settlement expected to occur by the​

end of the year.

Management has had approx. 12 months to "do something" .......and has basically sold a few boats ........

stock got to 50c ........

now 27c .....

if they continue to do nothing, then zero will be the correct answer ........

I hope they "fix" the mess.....................bout 150m would solve most of the problem ........

rgds
v-h