The Norwegian Oil Rig Company Petrojack have Monday filed for bankruptcy according to national laws. The company’s shares was suspended from Oslo Stock Exchange Friday after a weekly gain of almost 100%.
“In spite of the extensive efforts that have been made, it has not been possible to find a solution that can secure the continued operation of the Company or a solvent liquidation.”
The board of directors of Petrojack ASA (“Petrojack” or the “Company”) has resolved to file for bankruptcy proceedings. A bankruptcy petition will be submitted to Oslo District Court before opening of trade on Oslo Børs today, 8 March 20, the company says in a statement.
It’s been know for months that the oil exploration company have been in deep financial trouble.
In spite of the knowledge, the shares of Petrojack rose almost 100 percent last week, until Oslo Stock Exchange suspended the trading friday after another jump of 45 percent.
Petrojacks biggest shareholder is Petrolia Drilling – one of the major supplier of drilling vessels for offshore, deepwater oil and gas exploration and development drilling in the North Sea.
“The Company has in close co-operation with its principal creditors explored the possibilities for restructuring its debt and/or divesting its assets for the benefit of its creditors and shareholders. In spite of the extensive efforts that have been made, it has not been possible to find a solution that can secure the continued operation of the Company or a solvent liquidation. The board of directors of the Company has therefore concluded that the interests of the creditors are best served through a realisation of the Company’s assets through bankruptcy proceedings,” Petrojack says in a market statement.
Petrojack has since November 2009 been unable to service the interest on its bond loans. The Company has also failed to service its other debts as they have fallen due, including tax liabilities which fell due in December 2009 and January 2010.
Shareholders Money Lost
“We do not anticipate any return to the shareholders,” analysts at the Norwegian brokerage firm Terra writes in an update.
• Petrojack has resolved to file for bankruptcy. This was announced in the market this morning.
• We are not surprised by the announcement, as we have seen the company in a distressed financial situation with significantly lower cash flow than debt payments.
• Based on the company’s asset values and liabilities, we do not anticipate any return to the shareholders and doubt if all the debtors will be covered fully.
“Petrojack has filed for bankruptcy, which is not any surprise to us. Based on the company’s asset values and liabilities, we do not anticipate any return to the shareholders.”
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