Troubled family-owned Dutch shipping group Redderij Vroon has dismissed media reports claiming the company’s future to be uncertain, as it may be unable to service its debt.
The Dutch company specializing in offshore and shipping business has reached agreement with its creditors, the Telegraaf reported. The Breda-based concern has debts totalling EUR 1.1bn, and some activities will be trimmed down.
A press release from the company said that Vroon has a substantial presence in the offshore-support-vessel market, through its subsidiary Vroon Offshore Services. This business has been heavily impacted by a reduction in demand, resulting from the severe downturn in Oil & Gas markets.
Vroon’s other businesses are all performing in line with expectations. Since late 2016, Vroon has been in discussion with its banking and finance partners to address the financial consequences of this situation. These discussions have progressed in a constructive atmosphere and the Board expects to reach agreements in the course of the summer.
Despite the challenging market conditions during 2016, Vroon produced a positive cash flow, although did make various impairment charges on the book value of vessels that led to negative net results, for the first time in the Company’s history.
Vroon’s balance sheet remains sound. The Board has taken, and will continue to take, measures to support the Company’s financial condition. Vroon expects this, in combination with ongoing revenue enhancement actions and cost-saving programmes, to see the Company through the current market downturn.
Although the overall financial performance of Vroon is currently below historic averages, it is developing in line with the business plan set by the Board at the start of this year. Vroon’s focus remains the provision of quality services to our clients and an ongoing commitment to our Leaders in Safety programme, supported by dedicated colleagues at sea and ashore.