The change of business focus as well as issues related to the CSV North Ocean 103 will both incur costs and impact the company’s financial situation significantly, mostly due to the following:
Reduced utilization of some of the company’s vessels, barges as well as related equipment and personnel,
Delayed delivery of the CSV North Ocean 103 (currently under construction, and postponed to July 2009),
Associated unfunded variation orders on the CSV North Ocean 103, and;
General working capital need and restructuring cost.
As a consequence the company is in need of a refinancing, which will include raising EUR30 million in new liquidity. The company is currently working with First Securities on different refinancing alternatives and exploring avenues.
