Dolphin Group ASA, has filed for bankruptcy after a restructuring deal failed to materialise.
The Norwegian based seismic survey firm, company has announced it has not succeeded in restructuring the company and will therefore file a petition for bankruptcy today.
Last week the company warned it could be forced to file for insolvent liquidation of the company if a restructuring deal could not be found.
This morning, Tim Wells, chairman and Atle Jacobsen, chief executive of Dolphin, said: “Due to the continued deterioration in the oil service market Dolphin has had to make the decision to file for bankruptcy.
“It is a difficult decision, but in light of the unpredictability of the oil price and subsequent spending cuts of our customers, it has become impossible to have the visibility needed to continue our business.
“We have worked diligently since 2011 to build Dolphin into a company that would benefit all of our stakeholders- shareholders, lenders, suppliers, customers and our employees.”
All trading of the company’s shares and bonds will be halted.
Norwegian shipping group GC Rieber,in a statement to the Norwegian stock market said it had three vessels on long-term contract to Dolphin and would immediately initiate a process to evaluate alternatives for employment of its seismic fleet.
GC Rieber, which is owed $20million, said it was uncertain how much of that money it would recover.
It said it still believed its high quality and efficient vessels will attract interest even in a further consolidated seismic market.