Farstad Shipping ASA - Company update
As set out in the Q4 2015 and Q1 2016 financial reports of the Farstad Shipping ASA (“Farstad”), Farstad is pursuing various options to strengthen its financial position and capital structure including evaluating potential strategic alternatives.
As a first step of a financial restructuring of the Farstad group, Farstad and a majority of its secured lenders have on 30 June 2016 entered into a standstill and deferral agreement. Pursuant to the agreement, the relevant lenders have agreed to a postponement of all amortisations of the Farstad group falling due to them in the period from and including 1 July 2016 until 1 October 2016, and a defeasance of all financial covenants during the same period of time. The Farstad group will otherwise continue its operations in their ordinary course, subject to certain restrictions to ensure the interest of its lenders.
Farstad, together with its financial and legal advisors, will in the upcoming months work closely with investors, strategic partners and lenders with a view to find a solid financial platform for the long term operations of the group.
In parallel Farstad continues the work to optimize its operating model, fleet composition and fleet utilization, as well as operating cost improvements.
CEO Karl-Johan Bakken - tel. +47 901 05 697
CFO Olav Haugland – tel. +47 915 41 809
Farstad Shipping's fleet currently consists of 57 vessels (29 AHTS, 22 PSV and 6 SUBSEA) and 1 SUBSEA vessel under construction. The Company's operations are managed from Aalesund, Melbourne, Perth, Singapore, Macaé and Rio de Janeiro with a total of 1,885 employees engaged onshore and offshore. The Company's strategy is to be a leading quality provider of large, modern offshore service vessels to the oil industry.