Photo: Safe Caledonia; Source: Prosafe

Prosafe still working to hammer out financial solution with lenders

Offshore accommodation provider Prosafe is still working to resolve its financial situation with lenders and come up with a long-term solution for the company.

Prosafe’s previous update on its talks with lenders on 1 October 2020 stated that the discussions were constructive and lenders, in general, maintained their support for the company to continue to operate on a going concern basis and seek a long-term financial solution while reserving their rights.

In an update on Tuesday Prosafe said that its creditor discussions continue, and the target remains to agree on a sustainable financial solution on a consensual and cost-efficient basis as early as possible.

According to Prosafe, it is still unclear what a final solution may look like, but as previously reported a significant equitization of debt is anticipated which in turn is likely to result in minimal or no recovery for current shareholders.

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

On this basis, the company will continue to defer making payments of scheduled instalments and interests under both bank 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 2020 subject to ongoing discussions with Cosco and the lenders.

Also on Tuesday, Prosafe won a contract for one of its units for operations offshore Trinidad and Tobago.

The contract to provide accommodation and construction support was assigned to the Safe Concordia in Trinidad and Tobago.

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