Saturday, January 7, 2017

Opec and the Trump can save the Farstad – Dagens Næringsliv

Shipping

Farstad-shipping company is close to bankruptcy, but the chief union representative Kim Lekva Velve think someone will save the business now that the oil market looks brighter.

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Kim Lekva Velve is at home in Trondheim after the meetings at the head office in Ålesund. He has had plenty to do after that, he was the chief union representative for the seamen’s union in the Farstad-shipping company for a couple of years ago. It has been the oil crisis, the permitteringer and cutbacks in the workforce, and now a debt crisis that threatens the entire company’s existence. On Thursday, it became clear that the supposed rescueman Kristian Siem, who would guarantee for a billion in new equity, resigned after a disagreement with its creditors.

Many speculate on what will happen now. It will be strange if there is no interest for Farstad Shipping, as large as we are and with the history we have. I hope Farstad-the name will survive and that the family remains the owner, says Velve.

It will be strange if there is no interest for Farstad Shipping.

Kim Lekva Velve, the chief union representative at Farstad Shipping

Hope on Opec and the Trump

the main employee representative Velve don’t know much about why Siem solutions failed, but he notes that a lot has happened in the market since the solution was launched a couple of months ago. It may have changed on the stakeholder assessments.

Rates and oil prices have gone up slightly again. Opec has meetings again about half a year, then we’ll see what comes out of these meetings again. Then you have Donald Trump, who soon becomes president. Can he make it so that the sanctions against Putin disappears? Then there is the sudden need for 25 – 30 boats up there in the north, if the sanctions are lifted, ” says Velve.

He also hope the oil companies do more odd jobs of work for each, as for example, plugging of old wells, the work they are required to do sooner or later anyway.

the shipping Company with 55 vessels, 1725 employees and offices in four countries has almost exclusively been a supplier to the oil industry, and has in common with the competitors had to suffer after oljepriskollapsen. The money runs out. The deficit was 1.2 billion after nine months of 2016. The debt was in the middle of 12,6 billion. Betalingsutsettelsene runs out in January.

Silent actors

The key players in the gjeldsdramaet is difficult to get in the speech. Chief Karl-Johan Bakken would Friday not speak to the DN while the company is in a negotiation situation. Stock exchange rules against selective leaks of inside information makes the players extra påpasselige. Deputy commissioner Eystein Eriksrud in the Siem Industries Group wrote in an email Thursday that “with regard to. Farstad is it not Siem it is on”. According to børsmeldingen the same day the problem was that the shipping company and Siem “not succeed in finding a solution for the restructuring that are acceptable to all affected creditors”.

  • Offshorerederiet Farstad Shipping is in crisis after revenue plummeted in the oil crisis.
  • 24. november launched the financier Kristian Siem a rescue package where his Siem Oilservice Invest should guarantee for a billion in new equity and take to 50.1 per cent ownership in the company.
  • Redningsplanen was abandoned 5. January after opposition from creditors who would not do innrømmelsene they were asked.
  • the Company has betalingsutsettelse out January. The company had 12,6 billion in debt, 3.4 billion in equity and a net loss of 1.2 billion for the third quarter of 2016.

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One of the implied the creditors, the director Wenche Nistad in the state financial institution directly Giek, aired on Thursday, his frustration towards the Sunnmørsposten.

” I believe that we and the banks are trying to take responsibility to get this to work, so we stopped by ansiktsløse bondholders who will not take the same responsibility. We don’t know even who they are, said Nistad to the newspaper.

She believes the probate court can be the last solution. The total is around 170 boats now in circulation in the Norwegian offshorenæring.

2017 is an absolutely terrible year. It is obvious that we must put in place a debt relief to get through this, ” she says to the local newspaper.

Employees have taken cuts

Back in Trondheim talking the chief union representative Velve about attempts to save the Farstad as a great community.

Many of the mariners have gone on a one-to two-system in which they have gone to 30 per cent of salary. When is the one month on the job and have two months free. It is a voluntary scheme, but 200 signed up. It was introduced 1. January 2016, ” he says.

Velve praises also Farstad family and all it has done to build and preserve jobs in Ålesund and Norway. He points out that the chairman of the board and storeier Sverre Farstad, holding up the consideration of the workplace as the most important when the Siem solution was launched.

If the Siem is out of the dance, he held-the family still have options. Investor Kjell Inge Røkke and his Aker is perhaps the only. Mr. Røkke has during the year secured control of both Solstad and Rem-shipping companies, but has previously been rejected by Farstad.

– See you on the Røkke as a possible rescuer?

I will not speculate. All are potential rescuers, who have money and capital.

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