Denmark-based Nordic Tankers and Herning Shipping will consolidate all of their shore-based activities in Copenhagen, Denmark, effective June 2015, as part of the restructuring process.
The Herning office functions are moving to Copenhagen and the Herning office will consequently be phased out. The aim is to have all employees in Denmark within chartering, operations and technical management working out of the new Copenhagen office.
“Consolidating the two offices will strengthen the shore-based organization, prompt knowledge sharing, bring economies of scale and facilitate even better support towards customers and partners,” said Nordic Tankers CEO and President, Per Sylvester Jensen.
A majority of the Herning employees will be offered new positions in Copenhagen. No other office is affected by the planned changes, nor are any seafarers.
The decision to consolidate all activities in Copenhagen will not change how Herning Shipping conducts business, Nordic Tankers says. All business relationships and contractual agreements between Herning Shipping and their customers and partners will remain unaffected.
Furthermore, an agreement has been reached between Triton, the owner of Nordic Tankers and Herning Shipping, and Herning’s lender to restore the company’s balance sheet and cash position. The agreement includes a cash injection from the owner as well as an agreement with the lender to restructure the debt to a sustainable level and extend the maturity date of the loan.
“Herning Shipping has suffered under a heavy debt burden and an exceptionally poor market for an extended period. The financial reconstruction allows Herning Shipping a.s. to make a fresh start and enhances Herning Shipping’s and Nordic Tankers’ ability to execute on our growth strategy,” said Jensen.