Solstad Offshore has deferred payments under its financing agreements for another four months to negotiate a restructuring plan
Norwegian OSV owner Solstad Offshore ASA reported that it has secured additional time from its creditors and stakeholders to put together a restructuring plan for the group.
As it outlined in previous stock exchange filings, Solstad Offshore (SOFF) and a number of its group companies have entered into agreements with key creditors to suspend and defer payments under the companies’ financing agreements until 20 June 2019. Under a new agreement with creditors, SOFF said this agreement will now expire on 31 October 2019.
The additional time will allow SOFF to continue to negotiate the group’s restructuring. It said the negotiations were progressing, but more time was required to find a sustainable solution to the financial situation of the SOFF group. “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”.
In its exchange filing, Solstad said as per the resolution of the meeting of the bondholders of SOFF’s bond issue with ISIN NO 001 0713548 on 19 December 2019, the extension also includes the suspension of payments under the bond issue. Alongside the agreed suspension extension, Solstad Invest 3 AS 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.
SOFF is one of the largest OSV owners and operators in the world, with 139 vessels. At the end of Q1, SOFF had 89 vessels in operation with an overall active vessel utilisation rate of 80% up from 70% in Q1 2018.
SOFF reported revenue of Nkr1,146M (US$135M) in Q1 2019 up from Nkr875M (US$103M) in Q1 2018. Adjusted EBITDA was Nkr217M (US$25M) for the quarter compared to a loss of Nkr16M (US$2M) in Q1 2018.