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Floatel acknowledges "unsustainable" situation after huge impairment

The strained offshore market has made Swedish Floatel book an impairment of almost USD 400 million, a move that in one swoop has eliminated the company's entire equity. The situation is "unsustainable," acknowledges Floatel, which has stopped payments on its loans.

Photo: Ints Kalnins/Reuters/Ritzau Scanpix

Sweden-based Floatel, which leases accommodation rigs to the offshore sector, is standing on a burning platform after its liquidity has come under massive pressure due to a new, huge impairment.

In the second quarter, Floatel booked an impairment of USD 400 million. And the impairment has in one fell swoop eliminated the company's entire book equity, which now stands at negative USD 5.4 million, compared to USD 542 million at the same time last year.

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