Norwegian shipowner Farstad Shipping and a company in the Siem Industries group (Siem) have entered into a non-binding letter of intent for the financial restructuring of Farstad Shipping, with Siem or a fund managed by Siem as a key equity investor.
To remind, Farstad and a majority of its secured lenders have entered into a standstill and deferral agreement until November 10, 2016.
The letter of intent will see Farstad Shipping and Siem continue the company’s discussions with key stakeholders of the Farstad Shipping group with a view to find a ‘solid financial platform’ for Farstad Shipping’s continued operations.
The company said it will give no further comments at this stage.
Farstad Shipping’s fleet includes 6 subsea vessels, and 1 vessel under construction.