Marine seismic company Polarcus has agreed standstill and settlement terms with its lenders who have committed to refrain from exercising any further security interests over the Polarcus Group or their assets.
The agreement follows the lenders’ decision to take over Polarcus’ shipholding unit and vessels made late in January 2021, after the company defaulted on debt payments, halting all interest and installment payments to finance providers.
The company has been in discussions with lenders since on the terms a standstill and settlement agreement (SSA), that was finally reached on Wednesday, 14 April 2021.
Under the agreement, the lenders will refrain from exercising any further security interests over the Polarcus Group or their assets with immediate effect.
Further, on completion of certain conditions by the Polarcus Group, the lenders agree to release the Polarcus Group from all claims and all remaining security interests held against it and its subsidiaries in full and final settlement of the lenders’ claims, except for certain claims and security interests in three of the company’s subsidiaries.
The conditions include an order from the Grand Court of the Cayman Islands sanctioning the entry into the standstill by the company.
Polarcus said it expects all conditions to be satisfied during the second quarter of 2021.
The conclusion of the SSA is an important step for the joint provisional liquidators appointed to Polarcus to assess the appropriate next steps for the company, including whether to seek a court order to place the company into official liquidation and to appoint an official liquidator.
In the circumstances, Polarcus considers that it is appropriate for trading in the company’s share to remain suspended.