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Farstad Shipping has entered into a restructuring agreement with several
stakeholders, including secured lenders, key bondholders supported by Aker
Capital and Hemen Holding.

The company has announced that the credit committees of the senior [ds_preview]lenders have approved the restructuring plan. Provided that the restructuring plan is approved by bondholder meetings and the general meeting to take place on March 2 and 3, respectively, the restructuring is expected to be completed by the end of March 2017.

The contemplated combination of Solstad Offshore, Farstad Shipping and Deep Sea Supply will as previously communicated move forward separately.

The agreement is intended to strengthen the balance sheet and liquidity position going forward, and secures a robust and long term financial position for the group. In January, a planned takeover of Farstad by offshore operator Siem failed, due to financing banks‘ objections.

Farstad Shipping achieved an operating income of NOK 524.3 million for the 4th quarter. The operating loss (EBIT) was NOK 2,034.3 million after impairments of NOK 1,816.1 million. Loss after taxes was NOK 2,382.6 million. The operating income at 31.12.16 was NOK 2,687.6 million. The operating loss (EBIT) was NOK 3,105.9 million after depreciations and impairments of NOK 3,616.0 million, of which impairment charges amounts to NOK 2,678.5 million. Loss after taxes was NOK 3,600.3 million.

The board will not propose dividends to be paid for the fiscal year 2016.

Farstad Shipping‘s fleet currently consists of 56 vessels (27 AHTS, 22 PSV and seven SUBSEA). The company‘s operations are managed from Aalesund, Melbourne, Perth, Singapore, Macaé and Rio de Janeiro with a total of 1,500 employees engaged onshore and offshore.