Farstad Shipping ASA – Company update
As communicated to the market, Farstad Shipping ASA ("Farstad") has for a period of time negotiated with its key creditors to obtain a financial restructuring of the Farstad Shipping group supported by Siem Oil Service Invest, Limited ("SOSI"). Farstad and SOSI have however not succeeded in finding a solution for the restructuring which is acceptable to all affected creditors. Therefore, the term sheet between Farstad and SOSI has terminated, and Farstad will pursue other alternatives for its financial restructuring in continued cooperation with its key financial creditors.
With a view to preserve liquidity, Farstad and a majority of its subsidiaries will uphold their current suspension of service of financial debt. The companies' stand-still agreement with their secured lenders ending on 31 January 2017 will also remain in force.
The Farstad Shipping group will otherwise maintain operations as a going concern. All suppliers and trade creditors will be paid in their ordinary course.
No further comments will be given at this stage.
CEO Karl-Johan Bakken, tel. +47 901 05 697
CFO Olav Haugland, tel. +47 915 41 809
Farstad Shipping’s fleet currently consists of 55 vessels (27 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 1,725 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.