Regardless of the recent loan forbearance agreement extension expiring, Prosafe is still in discussions with lenders to find a long-term financial solution which would stabilize operations.
Namely, Prosafe agreed on a forbearance agreement for $1.3 billion and $288 million facilities earlier this year. As part of this, the company was allowed to defer making payments of scheduled instalments and interests under both facilities.
This agreement was first extended in June until the end of that month and then one more time which extended it until the end of July.
Prosafe said last week that the forbearance arrangement expired. However, the process and creditor discussions, according to the company, remain constructive and lenders in general “ maintain their support for the company to continue to operate on a going concern basis and seek a long-term financial solution while reserving their rights ”.
Prosafe added that, pending the conclusion of these discussions, the company continues to operate on a business as usual basis to protect and create value through challenging market conditions.
On this basis, the company will continue to defer making payments of scheduled instalments and interests under both bank facilities.
Similarly, payment of the final instalment owed and due under the seller credit to Cosco for the Safe Notos remains subject to ongoing discussions with Cosco and the lenders.
It is worth noting that the offshore accommodation rigs provider has presented a business plan and a restructuring proposal to lenders which – if approved as proposed – will result in a sustainable balance sheet.