Norwegian offshore vessel owner Solstad Offshore (SOFF) needs more time to complete its restructuring and has therefore agreed an extension of suspension and deferrals of payments under its financing agreements.
One of Solstad’s vessels. Author: Alan Jamieson
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.
In December 2018, 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.
Since negotiations for the restructuring of the SOFF group were not completed by June 20, SOFF announced in June 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.
On Thursday, October 31 Solstad said that the parties had agreed to extend the suspension until March 31, 2020, subject to agreed milestones being met throughout the suspension period.
“The process involves the stakeholders expected to be affected, and SOFF is satisfied with the progress of the restructuring. The extended suspension is an important step towards a solid financial platform through a consensus-based restructuring,” the company said on Thursday.
The bondholders of SOFF’s bond issue with ISIN NO 001 0713548 have agreed to a suspension of the payments under such bond issue until December 20, 2019.
SOFF will request an extension of such suspension beyond December 20, 2019, in order to match the suspension period for the bond issue with that of the suspension. Some of the entities in the Solship Invest 1 silo will request their financial creditors to approve similar suspensions with effect from January 1, 2020. Alongside the agreed extension, Solship Invest 3 upholds its unilateral suspension of debt servicing towards its one creditor that did not agree to the initial suspension.
It is also worth mentioning that, on Thursday, October 31, Ocean Yield agreed an extension of the standstill agreement with Solstad Offshore for the Far Senator and Far Statesman anchor handlers. The standstill agreement was extended up to and including March 31, 2020.
Offshore Energy Today Staff
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