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UK subsea contractor Ceona goes into administration

UK subsea contractor Ceona goes into administration
UK SURF and deepsea subsea contractor Ceona has gone into administration as the offshore downturn takes its toll.

Ernst & Young have been appointed as administrators of its UK companies Ceona Ship Holdings Limited, Ceona Ship 1 Limited, Ceona Equipment Limited, Ceona Services (UK) Limited, Ceona Chartering (UK) Limited, Ceona Contracting (UK) Limited, and Ceona Investments Limited. As well as Guernsey-registered companies Ceona Crewing Ltd and Ceona Holding Ltd.

Singapore-registered Ceona Pte Limited, OIG Giant I Pte Ltd and OIG Giant II Pte Ltd are not part of the insolvency and will continue to operate.

The company was founded in 2012, and reportedly backed by Goldman Sachs. A report by The Times last week said the company has debts of as a much as $800m. As a result of entering administration some 102 shoreside staff have been made redundant.

Alan Bloom, joint administrator of the UK Group companies, commented: “In the period leading up to the administration, the Group’s cash flows came under significant strain due to falling demand for the Group’s services as a result of the depressed market conditions and ongoing investment in the Group’s fleet.

“Despite attempts to restructure the Group it was unable to achieve a turnaround on a solvent basis and the Group was therefore placed into administration by the Directors.”

Ceona has fleet of five vessels according to its website, two of which belong to Singapore-based companies that are not part of the administration proceedings. GC Reiber Shipping terminated the charter of its DP3 pipelayer the Polar Onyx to Ceona on 4 September following a default on charter payments

Following the news that Ceona had entered administration it said: “GC Rieber Shipping will seek to recover outstanding and future claims and losses through the established cash deposit and from the companies in administration. It is uncertain to which extent demands will result in significant coverage.”