The Marseilles Commercial Court has decided to sell Bourbon Corporation’s assets to Société Phocéenne de Participations (SPP), a company owned by the French banking institution, as part of the company’s reorganization proceedings.
The ownership transfer of the offshore oil and gas industry supplier’s assets is set to take place as of January 2, 2020.
The decision comes after the court refused to examine the takeover offer submitted on behalf of JS & Co by Jacques de Chateauvieux earlier this month, accepting solely the offer submitted from SPP.
SPP’s offer concerns 100% of the assets and activities of Bourbon Corporation and is set to convert approximately EUR 1.4 billion of debt currently borne by the group into capital and EUR 300 million of debt in the form of repayable bonds.
It also includes EUR 150 million in bank financing, of which EUR 30 million can be released as soon as the transfer of ownership is completed to meet immediate liquidity needs.
The business plan is based on the implementation of the strategic action plan #BOURBONINMOTION.
Launched in February 2018, this action plan is based on three priorities:
- Reorganizing the activities of BOURBON into three distinct affiliates: Bourbon Marine & Logistics, Bourbon Subsea Services and Bourbon Mobility. These companies will be able to implement their own strategies and focus on profitable growth changing their model to develop more integrated services.
- Capitalizing on the digital revolution by connecting the fleet, the main objective being the improvement of operational excellence at optimum cost. Under the “Smart shipping” program, the fleet of 132 modern supply vessels will be connected
- Responding to the human challenge by supporting the change
Under the offer, Bourbon will practically be liquidated, leading to a total loss for the shareholders and bondholders.
As explained by Jacques de Chateauvieux, Chairman and CEO of Bourbon, under the offer Bourbon Maritime’s new shareholders would become responsible for the recovery of the French company, its future development and the preservation of its decision-making centers in France.
Namely, Société Phocéenne de Participation told the court that if it became the shareholder of 100% of Bourbon Maritime’s capital, a company in reorganization proceedings, it would present a continuation plan for Bourbon Maritime for which 75% of the creditors have already given their consent.
In terms of governance, the SPP’s proposition would be to provide the company with a Supervisory Board composed of 8 to 10 members representing the shareholder and industry experts, as well as a Management Board composed of Gaël Bodénès, Chairman, and Thierry Hochoa.
SPP is owned by BNP Paribas, Caisse Régionale de Crédit Agricole Mutuel Alpes Provence, Caisse Régionale de Crédit Agricole Mutuel de Paris et d’Ile de France, CM-CIC Investissement SCR, Crédit Lyonnais, Natixis and Société Générale.
Bourbon has 483 vessels in its fleet and over 8,200 employees across 47 countries of operation.