DOF Group has made progress is negotiating with its banks and bondholders with a view to finding sustainable long-term financing structure that is aligned with the current market environment.
The bondholders in each of DOFSUB07, DOFSUB08 and DOFSUB09 bond loans resolved to continue and extend the engagements on certain terms and conditions which are deemed beneficial by the bondholders, DOF Subsea and DOF ASA. The final approval of the terms now agreed will be given in a bondholders’ meeting to be held medio January, 2020.
Banks involved in the DOF Subsea refinancing process are showing good will to contribute to achieving a positive result. The refinancing proposal includes adjustments to the current amortization profile among others. The negotiations are still ongoing and a few of the banks, representing less than 10% of the outstanding loan balances, show reluctance, but will hopefully agree to a continued beneficial participation, the company explained.
DOF ASA is engaged in constructive dialogue with the banks in the DOF Rederi fleet facility, and together with DOF Subsea with major financing institutions in Brazil, in order to discuss adjustments to the current amortization profile, and thereby align, strengthen and support the financial operations throughout the DOF Group structure.
The board of directors and the management believe that a solution is obtainable early Q1, however no assurance can be given the DOF Group will be successful in this respect.
All of the DOF group of companies will in the meantime carry on their business without change.