Tuesday 27 August 2019 2:55 pm

Creditors of Gulf Marine Services look at hiring adviser as part of debt negotiations

Lenders to London-listed group Gulf Marine Services (GMS) are reportedly nearing the appointment of an adviser to boost their efforts in renegotiation talks over the firm’s current debt terms.

Abu Dhabi Islamic Bank, HSBC, and Abu Dhabi Commercial Bank are among the creditors looking at picking an adviser, according to Reuters, which reported that two sources said the restructuring advisory group AlixPartners could be chosen for the job.

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Total net debt at GMS, an offshore oilfield contractor that listed on the London Stock Exchange in March 2014, was reportedly $400m at the end of 2018, with the firm in talks with creditors over how to adjust its current capital structure.

Waning oil prices and a downturn in the oil and gas services sector has dented groups such as GMS, which last week revealed that its chief executive Duncan Anderson was to stand down.

In October last year the firm’s chief financial officer also gave notice of his resignation, having joined the company prior to its initial public offering (IPO).

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GMS declined to comment.

However, in a statement earlier this month, the firm said: “The company and its financial advisors continue to be in active and constructive discussions with its banking syndicate and individual lenders with a view to receiving a waiver or agreeing an amendment to the relevant covenants and to establish an appropriate long-term sustainable capital structure.”