Oslo-listed subsea contractor Cecon ASA has requested from a Norwegian court to declare it bankrupt having failed to present a restructuring plan.
Over the last 4 months, Cecon has been subject to compulsory composition proceedings, during which time it explored all possibilities for a debt restructuring solution which would give the creditors of the company a minimum of 25% dividend over time.
“Up until very recently, the company was working on a solution that, while being complex, was promising. However and due to recent and unforeseen events, the company’s cash balance (in Escrow against the Gdf contract ) was given to GdF against the company´s will and understanding of the Escrow terms. This has eliminated a very important building block in the restructuring solution,” Cecon said in a statement.
As a result, the company’s board of directors has decided to notify the compulsory composition committee that Cecon is unable to present a plan for a compulsory composition – whereby the committee will notify the same to the City Court of Aust-Agder and request that the company is declared bankrupt.