Fred. Olsen Energy risks bankruptcy without refinancing solution

Bolette Dolphin; Source: FOE

Offshore driller Fred. Olsen Energy (FOE) might be facing bankruptcy if no solution is found to its refinancing, which is being obstructed by one secured lender. 

As part of its ongoing refinancing efforts, FOE in early November presented to its stakeholders a proposal for the refinancing of its capital structure.

Among other things, the key elements of the proposal include the sale of the company’s drilling unit Bolette Dolphin, the issuance of new equity in the amount of approximately $130-140 million in consideration of approximately 89% of FOE’s share capital, post refinancing, and the issuance of new loan capital in the amount of approximately $90 million.

In an update on Thursday, FOE said it is in the process of negotiating a binding agreement for the sale of the Bolette Dolphin to a selected buyer at a price of $340 million.

Moreover, although some minor adjustments to the proposal are still being discussed, the key principles of the proposal have received the support of bondholders holding a majority of the bonds issued by FOE and the majority shareholder has confirmed that it will not object to the proposal if put forward to the general meeting.

FOE facing bankruptcy if no solution found

Finally, FOE said that the key terms of the proposal have received the support from all lenders, in FOE’s secured loan facility except for one.

Namely, the implementation of the proposal, starting with the sale of the Bolette Dolphin, requires the unanimous support of FOE’s secured lenders. Certain of FOE’s secured lenders have informed FOE that they today will submit to Oslo Tingrett a petition for an injunction against the one secured lender obstructing the proposal in order to procure that the lender consents to the sale of the drilling unit Bolette Dolphin.

Alongside these proceedings, FOE stated it continues its efforts to agree on a refinancing along the lines of the proposal with its key stakeholders. Unless a solution is found to the refinancing, the company will need to file for bankruptcy.

Share this article

Follow Offshore Energy Today

Events>

<< Jun 2019 >>
MTWTFSS
27 28 29 30 31 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

Uganda International Oil and Gas Summit 2019

Uganda International Oil & Gas Summit will once again examine the industry’s developments…

read more >

Nigeria Oil & Gas Conference & Exhibition 2019

The annual meeting once again proved to be a great success, gathering over 700 industry professionals…

read more >

08th OIL & GAS AFRICA 2019 CONFERENCE

OIL & GAS AFRICA is one of the most prime regional & international Oil and Gas conferences in East Africa…

read more >

Gas Indonesia Summit 2019

Gas Indonesia Summit & Exhibition is returning for the fourth edition in Jakarta…

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

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