Polarcus Limited (in provisional liquidation) (“Polarcus” or the “Company”) (OSE: PLCS) refers to the announcements made on 26 January 2021 (Polarcus Addressing Long Term Financing Structure Following Financial Default and Polarcus: Notices Of Enforcement) and on 2 February 2021 (Polarcus: Lenders Withdraw Support Of Ongoing Vessel Operations). Capitalized terms in this announcement have the same meaning as given in those announcements.
Throughout the above-referenced period, the Board has continued to have regard to the developing financial position of the Company, including the events of default that have occurred, the enforcement action which resulted in the Vessel-owning companies being transferred to a company controlled by the Lenders, and the Lenders confirming their withdrawal of continuing support of the Vessels’ operations. The Board has at all times taken steps in the best interests of the Company having regard to the interests of the Company’s creditors as a whole.
The Board remains focused on pursuing a restructuring of its indebtedness and maintaining the underlying business as a going concern. Discussions between the Company and its creditors, including the Secured Creditors, remain ongoing.
In furtherance of the Board’s desire to effect a restructuring and to maximize value for all creditors, the Company filed an application with the Grand Court of the Cayman Islands (“Court“) seeking the appointment of Soft Touch Provisional Liquidators over the Company, with a specific mandate to work alongside the Board to pursue a restructuring in the interests of all creditors (the “JPL Restructuring Application“).
On 8 February 2021, David Griffin and Andrew Morrison of Suite 3212, 53 Market Street, Camana Bay, Grand Cayman KY1-1203, Cayman Islands (“FTI Cayman“) and Lisa Rickelton of 200 Aldersgate St, Barbican, London EC1A 4HD (“FTI London“) were appointed as Joint Provisional Liquidators (“JPLs“) by an order of the Court (“Order“). Their appointment has immediate effect, and the JPLs are specifically authorized by the Court to take all necessary steps to develop and propose a restructuring of the Company’s financial indebtedness with a view to making a compromise or arrangement with the Company’s creditors or any class thereof. The JPLs intend to discuss and consult with the Board wherever practicable throughout their tenure acting as agent for and on behalf of the Company, and to work alongside the Board in pursuing a restructuring and in ensuring that returns to creditors are maximized.
The Board retains all powers of management conferred on it by the Order, subject to the appropriate and necessary oversight and monitoring of the JPLs as regards the exercise of such powers. The Board and the boards of directors of the Company’s subsidiary entities will continue, working alongside the JPLs as appropriate, to engage with the creditors, employees, other stakeholders and third parties in relation to the business and operations of the Polarcus group.
The Company will publish further announcements to update the Company’s stakeholders on the progress of the restructuring as and when appropriate.