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Polarcus sets out restructuring plans

Polarcus sets out restructuring plans
Dubai-headquartered seismic marine company Polarcus has announced a restructuring plan, which it says has the support of key stakeholders.

Polarcus is the second offshore company in the space of two days to announce a financial restructuring following Havila Shipping on Tuesday as companies seek to ensure they can ride out the downturn in the sector.

“The restructuring provides that several changes be made to the financing agreements of the company and enables its board of directors to permit the company to continue its operations as a leading marine seismic company,” Polarcus said.

Polarcus said banks, lease providers and certain bondholders and shareholders, had entered into written agreements with the company committing them to support the restructuring.

The restructuring covers the company’s bank loan facility, working capital, convertible and unsecured bonds, and sale and leaseback deals.

Under the restructuring Polarcus’ bank facility will be extended from 30 June 2017 to 30 June 2022, and there will be no amortisation until the beginning of 2018.

For its convertible bonds the maturity date will be extended until 30 March 2022, and separated into three tranches, while the security of its unsecured bonds will be extended to 30 December 2022.

Charter rates on two vessels under sale and leaseback, Polarcus Nadia and Polarcus Nalia will be reduced by 75% from current levels until the start of 2018.

The restructuring requires the approval of bondholder meetings and an egm of the company.