Cosco: Norwegian investor Ulltveit-Moe reportedly acquired 26.5m shares or 5% stake in cash strapped Sevan Marine. The move may raise hopes of a rescue for Sevan, which has seen its share plunge on the Oslo Stock Exchange and is in urgent financial restructuring talks after a failed US$275m share issue. The company faces a liquidity crisis as it struggles to service huge debts of US$950m while facing increased upgrade costs for its trademark cylindrical FPSO vessel Sevan Voyageur.
Sevan founder Jan Erik Tveteraas has stepped down as CEO of Sevan Drilling earlier this week. Sevan Drilling has 1 rig (Sevan Brasil) under construction with Cosco & has signed a LOI for another 2 similar rigs worth US$1.05b. The emergence of a white knight may allay some concerns over Sevan Driiling’s ability to finance its yet to be awarded Cosco rigs although the risk still cannot be discounted.
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