GOL Offshore in rough sea

GOL Offshore which was earlier recognized as Great Offshore is behaving contrary to the news. The stock is up into bright green, up 3.5% at Rs.67.25 whereas one would have expected the company to slump below its 52-week low of Rs.61.

The stock is up despite reports coming in that the company has defaulted on repayment of FCCBs to the tune of Rs.200 crore after bondholders rejected an extension sought by the company. It has now initiated a dialogue with bondholders to arrive at a solution regarding the repayment of the dues. The same payment has been due in Oct and the company had sought extension then too, which was granted for April 2013 and now when that date is due, it is seeking some more time. At that time too, in Oct, the bondholders had rejected extension. The company had got approvals only from the Board.

The company is sitting on a consolidated debt of Rs.3446 crore and there has been news of the company seeking CDR, which was rejected by banks.