Farstad stops paying creditors as Siem term sheet lapses

Norwegian offshore vessel owner Farstad Shipping is yet to complete its restructuring.

As part of the restructuring efforts the company in November signed a binding term sheet under which Siem Oil Service Invest Limited would provide the company with NOK 1 billion in new equity.

However, the struggling shipowner on Tuesday said the term sheet with Siem had formally lapsed.

Despite the term sheet lapsing, the company said that Farstad and Siem “continue their joint efforts to obtain a solid financial platform for the operations of the Farstad Shipping group.”

“Constructive discussions are currently being carried out with all affected creditors,” Farstad said in an Oslo stock exchange filing.

The company also said that, starting on Tuesday, it would stop service of interest and amortizations to its financial creditors in order to preserve the liquidity.

“A vast majority of the financial creditors have in support of the ongoing restructuring confirmed that they will not enforce payment against the Farstad Shipping group in the current situation. The Farstad Shipping group will otherwise maintain operations as a going concern. All suppliers and trade creditors will be paid in their ordinary course,” Farstad said.

Farstad’s fleet consists of more than 50 various offshore vessels, providing services to the international oil and gas industry. With the oil prices going down in 2014, many offshore services providers have found themselves in a tight spot, with falling demand, dayrates and revenues, not at all helped by an oversupply in the OSV market.

Presenting a third quarter loss in November, Farstad said that any increase in the offshore activity “is not yet visible or expected in the near future.”

Following its gloomy take for the offshore oil and gas market future, the company has recently started looking at other industries as well.

Early in December, Farstad Offshore, secured a contract for the complete mooring installation and hook-up of Ocean Farming’s semi-submersible offshore fish farm. More here: https://bit.ly/2gHZiF7

Offshore Energy Today Staff

Share this article

Follow Offshore Energy Today

Posted on December 20, 2016 with tags .

Events>

<< Dec 2019 >>
MTWTFSS
25 26 27 28 29 30 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

Africa Oil Week 2020

For over 25 years Africa Oil Week has been the meeting place for Africa’s most senior E&P stakeholders.

read more >

CERAWeek 2020

 Each year, CERA clients gathered for a few days in Houston…

read more >

Offshore Technology Conference (OTC) 2020

The Offshore Technology Conference (OTC) showcases leading-edge technology for offshore drilling, exploration…

read more >

2020 EXPLORATION AND PRODUCTION STANDARDS CONFERENCE ON OILFIELD EQUIPMENT AND MATERIALS

The development of consensus standards is one of API’s oldest and most successful programs.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply