Solstad a step closer to solution of debt crisis

Normand Supporter solstad supplyboatNormand Supporter. Photo: Solstad

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Solstad a step closer to a solution of the debt crisis

Solstad a step closer to a solution to a NOK 30 billion debt knot.  Bondholders agreed on the payment facilitation proposal, providing the shipping company with breathing space for up to one year. If the banks also okay an agreement, that is.

 

Norway’s largest offshore company convinced more than two-thirds of bondholders to ease up on the terms:

Solstad today announces that the bondholders have said yes to refrain from the repayment of interest on the billions they have borrowed.

Interests will be frozen as of immediate.  the deal may be valid for up to one year.

Their acceptance hinges on that the banks agree to the same, and may not require interests or repayments from the Skudeneshavn based shipping company.

These negotiations are ongoing, and Solstad reports today that they will come back with more information when applicable.

Today’s announcement comes after Solstad announced in October that they had to negotiate with their creditors in order to improve the liquidity in the company.

Four silos

Solstad Offshore still consists of four so-called silos, each containing one of the four shipping companies that merged last summer.

The payment remedies that are now being negotiated will not apply to the subsidiaries Solship 1 Invest AS, Solship 3 Invest AS and their subsidiaries.

In Solship 1 Invest is former Rem Offshore to be found, which was merged into Solstad in 2016, as the first company Solstad took over with the backing from Røkke’s Aker.

In Solship 3 Invest lies old Deep Sea Supply, which John Fredriksen brought to the table when he entered the owner’s side in Solstad through Hemen Holding.

NOK 30 billion in debt

The report for Solstad’s third quarter was released on November 7th, 2018. There they report of roughly NOK 30 billion in debts.

Norway’s largest offshore shipping company worsened the result from Q3 last year.

The operating profit before write-downs, however, is improving and ends at NOK 329.9 million, up from NOK 243.6 million at the same time last year.

The turnover is stable at NOK 1.4 billion.

The result before tax in the third quarter amounted to a loss of NOK 446.6 million, further down from NOK 369.5 million in the red in 2017.

 

© Sysla.no / #Norway Today

 

 

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