The move was made to address the company’s long term financing structure and debt service.
“The group has, as many others within our industry, during the last two years suffered from the general deterioration in the offshore service market. The group has taken a number of measures to improve its financial situation but the continued deterioration/lack of improvement to the general market conditions necessitates a more structured approach to the group's financial and operational situation,” Island Offshore stated.
With discussions ongoing with the finance providers, Island Offshore will, for now, stop payments of amortization to secured lenders, but it will continue to pay interest on the debt as it falls due.
“In anticipation of the successful outcome of the discussions with our long term finance providers, the group will continue to operate normally in all other respects and on the basis that all trade creditors will continue to be paid in full, and that the negotiations and deferral of amortization described above will not have negative impact on any of the trade or non-finance creditors of the group.”