Scana Steel Stavanger File for Bankruptcy

04 March 2015

Norway’s Scana Industrier ASA has decided to cease further funding of its subsidiary Scana Steel Stavanger AS, a provider of steel components to the offshore oil and gas industry.

Consequently, Scana Industrier has said that there is no basis for a solvent winding-up of the company and the Board of Scana Steel Stavanger resolved to file for bankruptcy March 3, 2015.

Scana Steel Stavanger has over a long period incurred substantial losses and has implemented a strong restructuring and workforce reduction in an attempt to achieve profitable business. Coincident with the restructuring and workforce reductions Scana Industrier has attempted to find new owners for Scana Steel Stavanger without success. It has not been possible to achieve profitable business and adequate order reserves, Scana Industrier has said.

Below is a statement of Scana Industrier regarding the Scana Steel Stavanger bankruptcy:

“Scana Industrier has considered if there is basis for a solvent winding-up of Scana Steel Stavanger, but is not able to cover the costs and the liquidity requirements involved in a solvent winding-up. Nor has it been possible to gain external financing. Thus, filing for bankruptcy is the sole option for the Board of the company, and the financial situation implies that the company must file for bankruptcy now.

In connection with the bankruptcy Scana Industrier will incur additional costs related to guarantees for certain Scana Steel Stavanger obligations. Except for this, Scana Industrier has currently not identified further funding obligations related to the bankruptcy in Scana Steel Stavanger. It is expected that the group’s banks will cover their claims against Scana Steel Stavanger