Hermitage Offshore Services Ltd. (NYSE:PSV) and 28 subsidiaries file voluntary Chapter 11 petitions amid global oil slump and coronavirus pandemic

Hermitage Offshore Services Ltd. and 28 of its subsidiaries including all its vessel-owning subsidiaries (collectively, the “Company”) announced today that they have filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York.

The Company took this action following a prolonged slump in global oil prices, driven in part by the global coronavirus pandemic, and its effect on the Company’s business. While the Company would have preferred to complete its financial restructuring out of court, it was unable to reach a consensual agreement with its lenders, which made filing Chapter 11 necessary to provide a single forum for all continuing conversations with its lenders.

The Company anticipates that the Company’s business operations and relationship with its customers and vendors will not be adversely affected by this proceeding while it works constructively with its lenders toward a consensual resolution. The Company values the business of its customers and vendors and is committed to continuing its long-standing business relationships with them uninterrupted as it works through this process. Under Chapter 11 protection, the Company’s vendors are afforded “administrative” status for all shipments made, or services provided, subsequent to the filing. As a result, payments for new shipments or services will be made in the ordinary course of business either by the Company or one of the Company’s managers, which is not part of the Chapter 11 filing.

The Company’s customers are also afforded the aforementioned “administrative” status. As such, they will continue to receive uninterrupted service from the Company and the Company will perform all of its duties and obligations under its current and future charter party agreements.

The Company’s customers and vendors have been historically paid by one of the Company’s managers which is outside the Chapter 11 cases and so customers and vendors will be paid amounts due now and in the future without interruption.
Source: Hermitage Offshore Services Ltd

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