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Oslo-listed dry bulk operator Bulk Invest ASA, formerly Western Bulk, has sent a written inquiry to its main creditors as it aims to launch a dialogue and pursue potential solutions to the company’s “challenging financial situation.”

Further, the company also said that it has mandated a financial advisor to assist with the restructuring of the company’s obligations related to its chartered-in fleet.

The mandate also includes a plan to potentially raise additional equity capital if a viable solution with the main creditors is achieved.

“If no acceptable solution for the company with the main creditors is achieved, the basis for the company’s continued operations will be reassessed,” Bulk Invest said.

The announcement comes following the company’s sale of its wholly-owned subsidiary Western Bulk Chartering in an attempt to stay financially viable having been hit hard by tough market situation marked by dramatically low dry bulk charter rates.

Western Bulk Chartering was sold in an auction to Norway-based private investment company Kistefos AS for a cash consideration of USD 16 million.

Under the terms of the sale, Kistefos AS will further assume the company’s remaining debt amount of USD 31 million.