a team led by AJ Jain, Harkand North America Managing Director, has agreed to a management buyout (MBO) of Harkand’s North American and African business.

The new company, to be named Ethos Offshore Limited, will continue to provide subsea engineering and construction services to Harkand’s existing US, Mexican and West African client base to market-leading standards.

According to a statement on Friday, the new company, backed by investment funds advised and managed by Oaktree Capital Management, L.P. (“Oaktree”), is expected to have a contracted backlog of $145 million worth of projects. The move also could potentially safeguard more than 100 jobs across North America, Africa and Mexico.

The management boyout has ensured that Ethos Offshore is able to deliver the full scope of subsea services to established clients, including ROV and diving, inspection, engineering, project management and survey services. This will provide a sound platform for growth as new opportunities arise, the company said in the statement.

Related: Harkand enters into administration, over 170 jobs lost

Operations in the three regions will continue to be led by AJ Jain as chief executive officer, supported by Brian Schacht, head of business development and communications, James Parker, head of North America operations and Doug Fieldgate, head of West Africa operations.

Jain said: “Throughout the transition process, our focus will be to ensure that there is no disruption to clients. Our project teams will continue to deliver the high standard of services that our clients are accustomed to. We are delighted that Oaktree Capital Management continues to believe in the business created by the North America team of Harkand and is supporting not only the current projects but also the growth ambitions of our new company.”

Guillaume Bayol, Vice President at Oaktree, said: “The management team of Ethos Offshore, led by AJ Jain, has an established track record of delivering excellence to clients and partners in the Gulf of Mexico and West African markets. We are excited to work with them to build Ethos Offshore into a company with the highest reputation for safety, service and value for money in the subsea engineering and construction sector. We view this as an opportunity to build a platform and business model that can thrive in today’s challenging environment.”

In an e-mail sent to Offshore Energy Today, Deloitte spokesperson said that Ian Wormleighton, Philip Bowers and Michael Magnay of Deloitte were appointed on 4 May 2016 as Joint Administrators of Harkand Group Holdings Ltd and a number of its subsidiaries.

According to Deloitte, operating from a head office in Hammersmith, with offices in Aberdeen and Houston, Texas, Harkand employs approximately 400 staff with an estimated group turnover of £357m. The appointment relates to ten companies within the group.

“Unfortunately the Group’s European business (based in Hammersmith and Aberdeen) could not be saved, having ceased to trade prior to entering administration due to financial pressures. It will now be wound down by the Joint Administrators with the loss of 171 jobs. 39 staff will be retained for a short period to assist with the wind-down of the European business,” Deloitte said in a statement on Thursday.

In an update on Friday, Deloitte said that 148 jobs would be lost in Aberdeen.