Seismic vessel fleet owner SeaBird Exploration has released a proposal that would set it free from some $30 million in debt.
The company, which expects to run out of cash in August 2017 unless a solution is found, on Friday said it would propose its restructuring plan to bondholders and other creditors.
If the restructuring proposal is accepted, the debt in Seabird will be reduced by $22 million and lease obligations will be reduced by $10.4 million.
“The remaining debt under the SBX04 bond loan and the Glander credit facility will be a total of $5.0m and the remaining lease obligations (payable in kind until maturity) will be $ 2.4m,“ SeaBird said.
The restructuring would, among others, comprise turning most of debt and the accrued interest into equity at an offer price reflecting a subscription price of equity at NOK 5.00 per share. It also includes part of debt for its multi-client library.
The company said it was highly likely that new liquidity is required by early third quarter as it expects to run out of cash in August.
In order to get cash by August, SeaBird said it would have to score new contracts by late May/early June.
SeaBird said there were several leads but the timing remained uncertain.
Read the full restructuring proposal as shared by SeaBird on the Oslo Exchange here: https://www.newsweb.no/newsweb/search.do?messageId=428314
Offshore Energy Today Staff