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ICBC Financial Leasing extends support to Bourbon

ICBC Financial Leasing extends support to Bourbon
Bourbon has received a timely support from China’s ICBC Financial Leasing in the form of rescheduling of payments as the OSV owner struggles with losses in a depressed offshore market.

Bourbon said it has reached an agreement with ICBC to restructure rents payments under a leasing transaction entered into in 2013 and 2014, in parallel with negotiations that have led to the rescheduling of a large part of Bourbon’d debt.

The latest agreement has allowed Bourbon to make $240m less overall cash payments for the period of 2016 to 2018, plus an extension of two years of an initial bareboat charter period at a rate of 8%.

Bourbon said the agreement will not have any significant impact on the consolidated financial statements of the group as it will not affect the qualification of bareboat charter of the vessels.

“This agreement is a new milestone of our action plan ‘stronger for longer’ which is aimed at making Bourbon more resilient in particularly difficult market conditions,” commented Jacques de Chateauvieux, chairman and ceo of Bourbon.

In 2016, Bourbon reported a loss of EUR279.6m ($296.7m) and stacked an average of 70.6 OSVs or 29% of its fleet.