Farstad Shipping ASA – Company update
Reference is made to the company update from Farstad Shipping ASA of 24 November 2016.
Although the term sheet with Siem Industries, Inc. has formally lapsed,
Farstad Shipping ASA and Siem Oil Service Invest, Limited (a fund managed by Siem Industries, Inc.) continue their joint efforts to obtain a solid financial platform for the operations of the Farstad Shipping group.
Constructive discussions are currently being carried out with all affected creditors. In order to preserve the liquidity reserves of the Farstad Shipping group, Farstad Shipping ASA and a majority of its subsidiaries have resolved to stop service of interest and amortizations to its financial creditors with effect from today. A vast majority of the financial creditors have in support of the ongoing restructuring confirmed that they will not enforce payment against the Farstad Shipping group in the current situation.
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.