Global Offshore Services has informed that in view of the sudden repricing of contracts by the Company’s clients, even though all the Company’s assets are deployed on term contracts, the cash flow of the Company has been severely affected over the past few months. As a result the Company had approached its main Lender viz., State Bank of India to reschedule the loan installments to be repaid. Inspite of protracted discussions with the Bank and a commitment to continue paying interest, the Company and the Bank have not been able to arrive at mutually acceptable terms for re-schedulement of the loans and as a result of non-payment of the past 3 months installments, State Bank of India has classified the account of the Company as a nonperforming asset with effect from January 29, 2017.
The above information is a part of company’s filings submitted to BSE.
