Agreement on restructuring of Solship Invest 3 AS and its subsidiaries
Reference is made to the stock exchange announcement July 12th, 2018, in which it was informed that Solship Invest 3 AS and its subsidiaries ("SI-3") had entered into an agreement with its major financial creditors to postpone instalment and interest payments until July 20th, 2018.
SI-3 has today entered into an agreement with its financial creditors for the financial restructuring of SI-3 (the "Financial Restructuring").
The Financial Restructuring includes a deferral of scheduled instalments, interests and bareboat payments until December 31st, 2019 in a total amount of approximately USD 48 mill. The Financial Restructuring also entails suspension of the majority of financial covenants in the same period.
As part of the Financial Restructuring, SI-3 will be provided a loan from Sterna Finance Ltd. in the amount of USD 27 million, which shall be applied for general corporate purposes in SI-3.
Completion of the Financial Restructuring grants SI-3 a sufficient runway to meet the current market challenges.
"We are very satisfied that we have been able to come to an agreement with the lenders, and for their continued support to the Solstad Farstad group. The market is still challenging, but there are signs of improvement which we expect will be strengthened further on the basis of a continued stable, high oil price”, says Lars Peder Solstad, CEO of Solstad Farstad ASA.
The Financial Restructuring is subject to customary conditions to be satisfied within August 31st, 2018.
Skudeneshavn July 20th, 2018
Lars Peder Solstad, CEO at +47 91 31 85 85
Anders Hall Jomaas, CFO at +47 40 04 29 18
Solstad Farstad ASA
This information is subject of the disclosure requirements according to the Norwegian Securities Trading Act section §5-12