Lenders grant another extension to Olympic to complete restructuring
Norwegian offshore vessel owner Olympic Ship has been granted another extended stand-still to complete its financial restructuring.
In July 2016, Olympic informed the company had initiated discussions with the secured lenders in relation to the need for an adjustment to the repayment profile of the financial debt of the company and its subsidiaries.
After months of talks with creditors, the company had obtained support for the financial restructuring from all key stakeholders of the group on December 9. The goal of the restructuring is to create a financial runway for the group through 2020, even in a low case scenario with limited or no utilization for the vessels without long-term contracts. The completion of the restructuring is subject to several terms and conditions, including inter alia, approval by the requisite bondholder meetings and final documentation and agreements with the relevant stakeholders.
On December 23 the bondholders granted Olympic an extended stand-still from up to and including January 20, 2017.
The company said on Tuesday that, in order to complete the restructuring, including in particular final documentation and agreements, the stand-still from the secured lenders is extended up to and including January 31, 2017.
Olympic further added that, as part of this new stand- still agreement, the group will continue to pay interest to the finance providers and the secured lenders have agreed to postpone all amortization and maturities during the stand-still period.
“While the restructuring is in its final phase and the company expects the restructuring to be completed shortly, the company can offer no guarantees that final approvals, agreements and documentation will be reached or consummated,” Olympic concluded.
Offshore Energy Today Staff