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

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Posted on June 20, 2019 with tags .


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