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Image courtesy of Dolphin Geophysical/Facebook.

Norway’s Dolphin Group filed for bankruptcy on Monday, just one week after warning that negotiations with its main stakeholders had hit a wall.

“Due to the continued deterioration in the oil service market Dolphin has had to make the decision to file for bankruptcy,” Dolphin told Reuters.

The company has about $250 million in long-term debt with $150 million being unsecured bond debt with an interest rate of three-months NIBOR plus 750 basis points, Reuters added.

Chief Financial Officer Erik Hokholt told the Wall Street Journal that Dolphin has no plans to file a chapter 15 bankruptcy petition in the United States.

Trading of Dolphin’s stock on the Oslo exchange has been halted.

GC Rieber Shipping, a Norway-based shipping firm with three vessels on long-term contract to Dolphin, said it will immediately initiate a process to evaluate alternatives for employment of its seismic fleet.

GC Rieber Shipping’s outstanding receivables amount to about $20 million, the company added.

The shipping firm said it will seek to recover outstanding and future claims and losses from the estate, but it is “uncertain to which extent demands will result in significant coverage.”

Dolphin operates a fleet of new generation, high-capacity seismic vessels and offers contract seismic surveys, multi-client projects and processing services on a worldwide basis.

The group’s third quarter revenues slid down to $78.7 million from $128.5 million in the year ago quarter and the company took a $16.3 million vessel fleet and organizational re-structuring charge.

The company’s third quarter EBITDA fell to $18.4 million from $38.2 million in the same quarter last year.