Farstad Shipping ASA – Company update
Reference is made to the company update of 5 January 2017. As set out therein, Farstad Shipping ASA (the "Company") and a majority of its subsidiaries uphold their current suspension of service of financial debt in order to preserve liquidity. Accordingly, the loan outstanding under the bond issue with ISIN NO 001 0635964 will not be repaid at maturity in February 2017.
In support of the continued restructuring efforts of the Company, the secured lenders of the Company and a majority of its subsidiaries have agreed to a standstill and deferral agreement pursuant to which all amortisations and interest payable to the secured lenders will be deferred until 28 February 2017. Moreover, Ocean Yield ASA has agreed to a standstill in respect of bareboat hire payments for AHTS Far Senator and AHTS Far Statesman for the months of January and February 2017. Finally, substantial bondholders in the Company's two bond issues (ISIN NO 001 0679871 and NO 001 0635964) have agreed not to take steps to accelerate or enforce the loans outstanding under the Bond Issues during the same period of time. All agreements are subject to customary terms and conditions.
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.
Contacts:
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.