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By Davide Barbuscia and also Hadeel Al Sayegh DUBAI, Aug 27 (Reuters)– Creditors of Abu Dhabi- based Gulf Marine Services (GMS) are close to employing an advisor to assist them renegotiate financial obligation terms, 2 resources aware of the issue stated.

London- noted GMS, which offers assistance vessels for overseas oil and also gas and also various other power setups, has actually been injured by a slump in the oil and also gas solutions market after a depression in oil rates recently lowered need.

GMS had $400 million in complete internet financial obligation at the end of in 2014 and also is renegotiating terms with financial institutions after it stated it might not have the ability to satisfy primary financial obligation settlements late following year.

Over the previous couple of months the business, suggested by shop financial investment financial institution Evercore, has actually remained in talks with its loan providers regarding changing its funding framework.

GMS stated in a declaration previously this month that the talks were making progression, when it revealed the resignation of its president– the most recent of a collection of overhauls at board and also monitoring degree.

The company’s team of financial institutions, that include Abu Dhabi Islamic Bank, HSBC, and also Abu Dhabi Commercial Bank, can possibly select Al ixPartners, a restructuring consultatory company, as their consultant, the resources stated.

HSBC and also Abu Dhabi Islamic Bank decreased to comment while Al ixPartners and also Abu Dhabi Commercial Bank did not reply to ask for remark.

“The company and its financial advisors continue to be in active and constructive discussions with its banking syndicate and individual lenders with a view to receiving a waiver or agreeing an amendment to the relevant covenants and to establish an appropriate long-term sustainable capital structure,” GMS stated in its declaration previously this month.

In January, GMS worked out “additional headroom” with its financial institutions after breaching a financial obligation agreement.

It currently intends to discover a brand-new arrangement with its financial institutions in advance of additional agreement violations and also greater financial obligation settlements beginning with 2020.

“GMS may not be able to fully service the increased scheduled debt principal repayments, from the end of Q3 2020 onwards,” it stated in a discussion at the end of in 2014.

In enhancement to Al ixPartners, tactical consultant Houlihan Lokey remains in the race to recommend the financial institutions, stated the resources.

Houlihan Lokey did not reply to an ask for remark.

Earlier this year, GMS under its previous monitoring, likewise reviewed with financial institutions a possible financial obligation increasing workout, however that never ever happened, stated the resources.

GMS’ financial obligation settlements will certainly raise to around $60 million annually from 2020 onwards, from around $20 million formerly, the business has actually stated.

The business made a bottom line of $5.1 million in 2014 and also has actually started a variety of expense financial savings actions, consisting of a decrease in head count, which it states can wait $6 million by 2020. (Additional coverage by Stanley Carvalho; Editing by Susan Fenton)

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