Lenders give Farstad some breathing space

Farstad Shipping, a financially troubled offshore vessel owner, has managed to get a standstill and deferral agreement for amortisation and interest owed to lenders.

The company’s restructuring deal with Siem recently collapsed, and Farstad on Monday said it would uphold the previously announced suspension of service of financial debt in order to preserve liquidity.

Accordingly, Farstad said, the loan outstanding under the bond issue with ISIN NO 001 0635964 will not be repaid at maturity in February 2017.

As for the standstill deal, Farstad shared: “In support of the continued restructuring efforts of the company, the secured lenders of the company and a majority of its subsidiaries have agreed to a standstill and deferral agreement pursuant to which all amortizations and interest payable to the secured lenders will be deferred until 28 February 2017.”

Also, Ocean Yield ASA has agreed to a standstill in respect of bareboat hire payments for AHTS Far Senator and AHTS Far Statesman for the months of January and February 2017.

Finally, substantial bondholders in the company’s two bond issues (ISIN NO 001 0679871 and NO 001 0635964) have agreed not to take steps to accelerate or enforce the loans outstanding under the Bond Issues during the same period of time, the company said.

Farstad’s fleet consists of more than 50 various offshore vessels, providing services to the international oil and gas industry. With the oil prices going down in 2014, many offshore services providers have found themselves in a tight spot, with falling demand, dayrates and revenues, not at all helped by an oversupply in the OSV market.

Presenting a third quarter loss in November, Farstad said that any increase in the offshore activity “is not yet visible or expected in the near future.”

Following its gloomy take for the offshore oil and gas market future, the company has recently started looking at other industries as well.

Early in December, Farstad Offshore secured a contract for the complete mooring installation and hook-up of Ocean Farming’s semi-submersible offshore fish farm. More here: https://bit.ly/2gHZiF7

Also, Statoil last week hired six anchor handlers for rig moves in Norway. Farstad’s Far Saphire is one of the six vessels. More here: https://bit.ly/2inGlqU

Offshore Energy Today Staff