The Oslo-listed Cecon ASA subsea contractor has issued a request from a Norwegian-based court for it to declare the company as being bankrupt due to failure to present a proper restructuring plan.
Over the course of the past 4 months, the company has been a major subject to various compulsory composition proceedings. Naturally, over the course of these months Cecon looked into all possible debt restructuring scenarios which could give its creditors an over-time divident in the minimum amount of 25%.
“The company had been putting all of its efforts towards developing a solution that was as complex as it was promising, but as a result from recent and unforeseen events, Cecon’s cash balance (in Escrow against the GdF contract) was referred to GdF against the will of company and proper understanding of the specific Escrow terms. This contributed for the eliminating of an essential aspect of our restructuring solution,” as made clear my Cecon via a statement.
Due to this Cecon’s board of directors undertook the decision to make the compulsory composition committee aware of the fact that the company is no longer able to present a proper compulsory composition plan, thus the committee will send notification of the same to the Aust-Agder City Court and require for the company to be declared as being bankrupt.