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ICBC Financial Leasing extends support to BourbonICBC 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.

Lee Hong Liang, Asia Correspondent

April 12, 2017

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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.

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About the Author

Lee Hong Liang

Asia Correspondent

Singapore-based Lee Hong Liang provides a significant boost to daily coverage of the Asian shipping markets, as well as bringing with him an in-depth specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and had the ability to write hard news and featured stories.

 

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