Hermitage Offshore files bankruptcy to continue talks with lenders

By Caroline Salls

Pittsburgh, Aug. 12 – Hermitage Offshore Services Ltd. and 28 of its subsidiaries, including all its vessel-owning subsidiaries, filed Chapter 11 bankruptcy Tuesday in the U.S. Bankruptcy Court for the Southern District of New York.

The company said it took this action following a prolonged slump in global oil prices, driven in part by the global coronavirus pandemic, and its effect on Hermitage’s business.

While it would have preferred to complete its financial restructuring out of court, the company said 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.

Hermitage said it expects its business operations and relationship with its customers and vendors will not be adversely affected by the Chapter 11 proceeding while it works with its lenders toward a consensual resolution. Payments for new shipments or services will be made in the ordinary course of business either by the company or one of its managers, which is not part of the Chapter 11 filing.

According to court documents, Hermitage has $100 million to $500 million in both assets and debt.

No other case information had been filed as of Wednesday morning.

Proskauer Rose LLP is representing Hermitage in its Chapter 11 proceedings.

Hermitage Offshore is a Hamilton, Bermuda-based offshore support vessel company that owns 23 vessels operating primarily in the North Sea or the West Coast of Africa. The Chapter 11 case number is 20-11850.

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