Norwegian shipowner Atlantic Offshore says it has secured its continued operation amid the weak offshore market with an settlement to promote nearly all of its operations.

The operations will likely be offered to Aegopodium AS, a newly established firm owned 100% by H. Øgreid & Sønner AS.

The consideration for the transaction is NOK 16.9 million, or simply over US $2 million.

“The last few months have been extremely challenging. In the past few weeks we have continued operations under guarantees from secured creditors in the subsidiaries and we are pleased that there is now finally a solution. We have secured jobs for more than 400 skilled employees and ensured continued and uninterrupted services for more than ten offshore fields in Norway and the UK,” mentioned Roy Wareberg, CEO of Atlantic Offshore AS, who will assume an analogous position within the new firm.

“It has been a tough time for all parties involved and we sympathize with those who sustain losses. However, we are confident that the result represents the best possible solution for all stakeholders,” Wareberg added.

“The weak market will continue to be a challenge for several years, and we need to take further steps to ensure our continued competitiveness. Several contracts are up for extension later this year, and we will work hard to earn the trust of our customers and secure the value of our business,” Wareberg says.

The board and administration of Atlantic Offshore AS have been pursuing strategic choices for the corporate for greater than a 12 months. In the center of February, the board offered a restructuring resolution that had help from the principle shareholders, however the resolution was rejected by bondholders in March, forcing the Atlantic Offshore to hunt a distinct choice.

The rejection led to the settlement introduced Tuesday that can end result within the continuation of the commercial operations for the good thing about staff, clients, suppliers and different related events, the corporate mentioned.

Atlantic Offshore subsidiaries included within the settlement are Atlantic Offshore Gamma AS, Atlantic Offshore Alpha AS, Atlantic Offshore Epsilon AS, Atlantic Offshore Eta AS, Atlantic Offshore Zeta AS, Atlantic Offshore Management AS, and Atlantic Offshore Crew AS. Certain property and personnel in Atlantic Offshore Rescue Ltd, and the shares in Atlantic Offshore Crewing Services Ltd and Atlantic Offshore Scotland Ltd, are additionally included within the settlement.

Under the settlement, following the completion of the transaction Atlantic Offshore Beta AS, Atlantic Offshore Delta AS and Team Atlantic AS will file for chapter.