Norwegian offshore vessel owner Farstad Shipping on Tuesday got more time from secured lenders to complete its financial restructuring.
Last Tuesday, December 20 Farstad and a majority of its subsidiaries resolved to stop service of interest and amortizations to its financial creditors in order to preserve the liquidity. A vast majority of the financial creditors, in support of the ongoing restructuring, confirmed that they would not enforce payment against Farstad Shipping in the current situation.
The company said on Tuesday, December 27 that in support of the company’s continued restructuring efforts, the secured lenders of the Farstad Shipping group who are affected by the group’s decision to stop service of financial debt, have agreed to a formal stand-still, involving a deferral of all amortizations and interest throughout January 2017.
The company has been working on an overall restructuring plan to enhance its financial position to enable long-term operations for the company.
In early November, Farstad entered into a non-binding letter of intent with Siem Industries for the financial restructuring, with Siem or a fund managed by Siem as a key equity investor. By the end of November, Farstad and Siem signed a binding term sheet for a restructuring of Farstad.
Offshore Energy Today Staff