Solstad needs more time to find sustainable solution to financial situation

Norwegian offshore vessel owner Solstad Offshore needs more time to work out a sustainable solution for the company’s current financial position as restructuring talks continue.

One of Solstad’s vessels. Source: Flickr; Author: SP Mac

Late last year Solstad started discussions with its financial creditors and other stakeholders to improve the overall liquidity situation of the group and to create a robust long-term platform for the company.

The company in early December scheduled a bondholders’ meeting to ask their consent for temporary suspension and deferral of interest and amortizations on financial debt.

On December 19 the bondholders accepted to suspend and defer payments of interest falling due under the bond agreement in the period starting on December 20, 2018. A day later, certain of the SOFF-group companies and their secured financial creditors agreed to suspend and defer payments of principal and interest under the companies’ loan agreements until June 20, 2019.

By Thursday, June 20 a number of the companies in the SOFF group entered into agreements with a number of their key creditors for the suspension and deferral of payments under the companies’ financing agreements.

Albeit the negotiations for the restructuring of the SOFF group are progressing, more time is required to find a sustainable solution to the financial situation of the SOFF group, the company said in a statement on Thursday.

“SOFF is experiencing continued support from its creditors and stakeholders in this process which is conducted in a co-operative manner with a view to find a consensus based overall solution. It is acknowledged by all involved parties that securing contracts and operating the business in its ordinary course is a key priority, and the parties are acting accordingly.

SOFF therefore announced that all the secured creditors being part to the suspension had agreed to an extension of the suspension until the expiry of October 31, 2019. As per the resolution of the meeting of the bondholders of SOFF’s bond issue with ISIN NO 001 0713548 on December 19, 2019, such extension is also included in the suspension of payments under such bond issue.

Alongside the agreed suspension extension, Solstad Invest 3 upholds its unilateral suspension of debt servicing towards its one creditor that did not agree to the initial suspension.

The SOFF group continues to operate in its ordinary course as it has done for the past six months during the suspension.

Offshore Energy Today Staff


Spotted a typo? Have something more to add to the story? Maybe a nice photo? Contact our editorial team via email.

Offshore Energy Today, established in 2010, is read by over 10,000 industry professionals daily. We had nearly 9 million page views in 2018, with 2.4 million new users. This makes us one of the world’s most attractive online platforms in the space of offshore oil and gas and allows our partners to get maximum exposure for their online campaigns. 

If you’re interested in showcasing your company, product or technology on Offshore Energy Today contact our marketing manager Mirza Duran for advertising options.

Share this article

Follow Offshore Energy Today

Posted on June 20, 2019 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