Norwegian shipowner Olympic Ship has received support for financial restructuring from its stakeholders.
The support for restructuring was secured from new investors, secured lenders, and the yard creditors, which entails the creation of financial runway for Olympic Ship through 2020, even in a low case scenario with limited or no utilization for the vessels without long term contracts, the company informed.
Through implementation of the restructuring, a new pure-play subsea structure will be created and NOK 400 million injected in new equity. The restructuring is expected to reduce the company’s debt level with renegotiated bond terms and the introduction of new call option prices for the bonds, corresponding to a debt reduction of NOK 395 million.
As part of the restructuring, a new company Olympic Subsea, currently named Olympic Offshore, will be capitalized with new equity to be provided by existing owners of Olympic and new investors.
The newly created company will acquire 11 vessels from the Olympic Offshore, which will become a subsidiary of Olympic Subsea.
Four vessels are being sold and/or transferred in connection with the process, including the ‘Olympic Athene’, ‘Olympic Hera’, ’Olympic Commander’ and ‘Olympic Poseidon’.
The completion of the restructuring is subject to several terms and conditions, according to Olympic Ship, including the approval by the requisite bondholder meetings and by an Extraordinary General Meeting of the Company (EGM) and final documentation and agreements with the relevant stakeholders.
To remind, through its subsidiary Olympic Shipping, the Norwegian shipowner provided vessels for tidal and wave projects in Norway and UK.