Bermuda-based Hermitage Offshore Services and 28 of its subsidiaries including all its vessel-owning subsidiaries have filed voluntary petitions for reorganisation under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York.
Hermitage and its subsidiaries 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 said it will work constructively with its lenders toward a consensual resolution.
