Prosafe gets relief from lenders while working on long-term plan

Prosafe has gained support to an extension to the forbearance arrangement with a majority of its lenders until the end of June while working to agree on a long-term financial solution amid a dramatic impact of the Covid-19 and the oil price collapse.

As previously reported, the offshore accommodation rigs provider has recently presented a business plan and a restructuring proposal to lenders which – if approved as proposed – will result in a sustainable balance sheet.

The company has sent a request to lenders to extend the forbearance arrangement till end June 2020 in order to ensure stability and sufficient time to seek agreement with lenders.

In an update on Tuesday, Prosafe said it has gained support to an extension to the forbearance arrangement with a majority of its lenders across its $1.3 billion and $288 million facilities from end May 2020 till end June 2020.

As part of this, the company will continue to defer making payments of scheduled instalments and interests under both facilities.

Similarly, payment of the final instalment owed and due under the seller credit to Cosco for the Safe Notos remains as initially reported on 13 February subject to ongoing discussions with Cosco and the lenders.

The company said that its discussions with lenders remain constructive.

The forbearance arrangement shows support for the company and creates stability to work with lenders to agree a long-term financial solution, while lenders reserve their rights.

Pending this, the company continues to operate on a business as usual basis to protect and create value through challenging market conditions.