Reference is made to the market communication of Dolphin Drilling ASA (the
"Company") of 29 April 2019 regarding the company's restructuring process and
its updated financial calendar for 2019. Reference is also made to the market
communication of the Company dated 12 April 2019, which set out the details of
the reorganisation and recapitalisation of the Company's drilling business that
has been agreed among the secured lenders of the Company (as set out therein,
the "Drilling Recapitalisation").
The details of the Drilling Recapitalisation is still subject to discussions.
Such discussions are expected to complete or terminate within short.
Notwithstanding the Company's obligations under section 5-6 of the Norwegian
Public Limited Companies Act and section 3-1 of the Norwegian Accounting Act,
the Company considers that it is the best interest of its stakeholders to
postpone the annual general meeting in the current situation. It is expected
that the annual general meeting of the Company will take place in July 2019
unless the Company enters into bankruptcy prior to such time. The Company
reiterates in this connection that the secured lenders have informed the Company
that the Drilling Recapitalisation in any event will be implemented through a
consensual transaction or through a bankruptcy in the Company (it being
understood that the Company may not to receive any compensation for its drilling
business in the event of a bankruptcy).
A solvent completion of the Drilling Recapitalisation will require a resolution
by the bondholder meeting in the Company's bond issue with ISIN NO0010704125
(supported by at least 2/3 of the voting bonds), as well as a resolution by the
Company's shareholder meeting (supported by at least 2/3 of the voting shares).
Even a consensual completion of the Drilling Recapitalisation is expected to
leave the Company insolvent with remaining liabilities far exceeding the value
of its assets. Absent a voluntary composition of the Company's remaining
liabilities (which inter alia will include the bond debt of the Company), the
Company will be obligated to file for bankruptcy. In any event, it is doubtful
that the Company will continue as a going concern.
The Company reiterates that its drilling business in any event is expected to
continue in its ordinary course.
Contact: Ivar Brandvold, CEO, (+47) 22 34 10 00 or Hjalmar Krogseth Moe, CFO,
(+47) 22 34 10 00.
This information is subject of the disclosure requirements according to the
Norwegian Securities Trading Act.