Subsea services company DeepOcean is to wind down its UK-based cable lay and trenching businesses which employ 90 people.
The Norwegian outfit said the move follows an extended period of loss-making operations by three companies that form the operation, DeepOcean 1 UK Limited, DeepOcean Subsea Cables Limited and Enshore Subsea Limited.
The three companies on Wednesday filed a practice statement letter with the High Court in London and distributed a copy to all of their known creditors.
The document informs creditors of the companies’ intention to propose restructuring plans to creditors and the objectives of those plans. A court hearing will be held on 15 December 2020.
DeepOcean cited changes in procurement strategies and available installation capacity for the situation facing the UK operation, as well as a mismatch between the cable laying and trenching group’s contractual commitments and market conditions.
“Despite our long-term commitment to the cable-lay and trenching division, it has been loss-making for some time,” said DeepOcean chief executive Øyvind Mikaelsen.
“Unfortunately, we have come to the difficult decision that to propose an orderly wind-down of the business is the only viable option,” he added.
Mikaelsen said the move will allow the rest of the DeepOcean Group to move to a secure financial footing and continue to provide jobs and create value for stakeholders.
DeepOcean will continue to provide subsea services and said it “remains committed” to the renewables sector.
“This decision is no reflection on the hard-work and commitment of our valued employees, who we are supporting through a consultation process,” he said.
The cable laying and trenching businesses are run out of separate offices in Darlington and Blyth, in the north east of England.
“The company remains committed to the UK through the operations of other parts of the business, and continues to have an important hub in Aberdeen which will still employ more than 120 employees onshore and offshore working on inspections, maintenance, repair subsea construction and decommissioning projects,” a spokesperson said.