Boart Longyear has announced a management shakeup as its senior vice president for drilling services leaves the company.
Alan Sides, the SVP for drilling services, will leave the company from July 31.
Boart Longyear explained that “due to market conditions and management’s desire to simplify the company’s structure, Richard O’Brien, the company’s president and CEO, wuill be assuming operating responsibility for the Drilling Services business, and the company does not expect to replace Mr. Sides in the near term”.
O’Brien added: “I am confident that our leadership team will be able to continue, and potentially accelerate, the current improvements in our business by maintaining our focus on cost structure, productivity, and safety performance.”
The company has recently endured a series of financial difficulties as the market contracts,
The company recorded a massive fall in revenue in its 2014 first half results, seeing a fall of nearly US $300 million year on year.
The situation for the company was grim, with Boart Longyear CEO Richard O'Brien stating "as indicated in our most recent market updates, we feel we are at, or approaching, the bottom of the market".
In the results, the company added that "the ability of [Boart Longyear] to continue as a going concern is likely to depend on the company successfully concluding its strategic review of recapitalisation options with completion of a recaptialisation transaction no later than 30 June 2015".
"Without such a transaction, in order to continue as a going concern, the company would need to either experience a significant and rapid improvement in market conditions and the financial performance of the company, or secure a future amendment to the terms of the credit agreement to provide additional head room at 30 June 2015, none of which is being assumed at present."
Following this, its largest shareholder, Centrebridge Partners, stepped in to rescue the company, providing a $300 million bailout.