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Sovereign Oilfield collapses into administration as debt talks fail

OIL engineering company Sovereign Oilfield Group called in the administrators yesterday after talks with its lenders to renegotiate the terms of its debt failed.

The Aberdeen-based company appointed PricewaterhouseCoopers as administrator after failing to sell off parts of itself to pay down debt.

PricewaterhouseCoopers said it would look to sell Sovereign Oilfield’s subsidiaries where it was feasible through either a sale of shares or assets. It said the company’s nine subsidiaries were not in administration.

The company was listed on London’s AIM market in 2005 and operates subsidiaries which sell drilling tools and other structures for oil and gas companies. Sovereign Oilfield’s shares were suspended from trading yesterday.