Olympic Ship gets restructuring approval

After months of talks with creditors Norwegian offshore vessel owner Olympic Ship has received restructuring support.

“The company is pleased to announce that the discussions have been successful and that the company has now obtained support for a financial restructuring of the Group from key stakeholders of the Group,” Olympic Ship said on Friday.

The restructuring has been supported by new investors, secured lenders, shareholders and yard creditors.

According to Olympic Ship, the restructuring will 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.

Furthermore, through the restructuring, a new pure-play subsea structure will be created, and NOK 400 million injected in new equity.

The new company, to be named Olympic Subsea AS (currently named Olympic Offshore AS) will be  capitalized with new equity to be provided by existing owners of Olympic and new investors. Olympic Subsea will acquire from Olympic Offshore 11 subsea vessels. Olympic Offshore will retain ownership in 1 MPSV, PSVs, and 3 AHTSs. Also, Olympics Offshore will become a subsidiary of Olympic Subsea.


Related: Olympic disposes of subsea construction vessel


Also, as part of the restructuring plan, four vessels are being sold and transferred in connection with the process;  the “Olympic Athene,” “Olympic Hera,” “Olympic Commander” and “Olympic Poseidon.” The sale of “Olympic Athene,” which is already completed, will have a positive liquidity effect to the Group of NOK  70 after repayment of debt, and the three latter are expected to have a neutral liquidity effect, the company said.

Olympic Ship also said the restructuring would reduce the company’s debt level with renegotiated bond terms and the introduction of new call option prices for the bonds, corresponding to a debt reduction of NOK 395 million.

Worth noting, the completion of the restructuring is subject to several terms and conditions, including approval by the requisite bondholder meetings and by an Extraordinary General Meeting of the Company (EGM) and final documentation and agreements with the relevant stakeholders.


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