DOF Group has reached agreement with its lenders and bond holders to extend the suspension of interest payments on its debt as it negotiates a longer-term solution
DOF said all bondholders agreed to extend the standstill period for the three bond loans initially until 31 March 2021, with the possibility to extend further to 30 June 2021.
This follows agreement from financiers and banks to suspend repayments on secured debts of DOF and its subsidiaries, initially until 30 April 2021, dependent on certain customary terms and conditions.
This excludes servicing a Nkr100M (US$11.6M) credit facility provided to DOF Subsea by some of its lenders, taken out on 27 March 2020 to cover its immediate liquidity needs.
The repayment suspension should enable DOF to further discuss restructuring options with its lenders.
“The extensions of the standstill periods are entered into to facilitate the group’s continued dialogue with its secured lenders and the bondholders under the group’s bond loans regarding a long-term financial restructuring of the group,” said DOF.
“The discussions with the group’s main creditors remain constructive, and the group expects that further progress towards a consensual solution will be made over the coming months,” it added.
DOF and DOF Subsea will continue to impose a unilateral stand still on the payment of principal and interest to such secured lenders for as long as the suspension agreements remain in force. “Such a unilateral stand still is required to comply with the terms of the suspension agreements,” DOF said.
DOF Group operates 31 subsea construction and support vessels, 20 anchor handlers and 16 platform supply vessels.
Other Oslo-listed offshore vessel owners do not have such patient financial backers. Polarcus’ mounting debt led to lenders taking over the company and its seismic survey ships after the company defaulted on repayments. This week, it announced these lenders gave notice that they will no longer support vessel operations.
On 2 February, lenders instructed Polarcus to sail its vessels to safe locations to initiate a sales process.
Offshore sector financial and technical challenges will be discussed during Riviera’s Annual Offshore Support Journal virtual conference and exhibition on 23 March - use this link to view the programme and register for this event