Since the third quarter of 2018, Solstad Offshore and its subsidiaries have worked with their creditors towards a consensual financial restructuring. The majority of the stakeholders have confirmed their intention to work together to enter into a binding restructuring agreement within end of April this year.
The group's fleet will be refocused and 37 vessels of the older and less sophisticated vessels are to be sold or scrapped over a period of time. The long term business of the group will be based on a core fleet of approximately 90 vessels.
The fleet consists of a mix of PSVs, AHTS vessels and OCVs/CSVs.
Approximately NOK10bn ($959m) of debt will be converted into equity in a bid to strengthen the group’s balance sheet and liquidity, amongst other restructuring components.
“Passing this milestone means that we continue to operate Solstad Offshore in a controlled manner in these challenging times, with predictability for our employees and clients worldwide. The discussions with the stakeholders are constructive and we look forward to work with the parties with a view to agree on the restructuring over the next weeks,” said Lars Peder Solstad, ceo of Solstad Offshore.
“We are entering a period where global offshore activity is likely to be reduced with the impact of the COVID-19 virus and drop in the oil price. A successful implementation of the restructuring will enable the company to better meet the challenges of the current markets and position the company well for the coming years,” he added.
In June 2017, Solstad Offshore merged with Farstad Shipping and Deep Sea Supply to become Solstad Farstad. In October 2018, the merged Solstad Farstad changed its name to Solstad Offshore.
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