Solstad secures backing for restructuring of offshore vessel business

Offshore staff

SKUDENESHAVN, Norway – Solstad Offshore has reached agreement with a majority of its stakeholders on a restructuring of the company.

Key terms include:

• Around NOK10 billion ($959 million) of debt (secured debt, leasing obligations, bond obligations and others) to be converted to equity.
• The group's balance sheet and liquidity to be strengthened.
• The offshore service/construction/platform supply vessel fleet to be rationalized, with 37 older vessels likely to be sold or scrapped, with the long-term business based on a core fleet of around 90 vessels.
• Termination agreements in respect of the leasing agreements for the five vessels owned by subsidiaries of SFL Corp, and new leasing agreements on amended terms for two vessels owned by a subsidiary of Ocean Yield, F-Shiplease.

CEO Lars Peder Solstad said: “We are entering a period where global offshore activity is likely to be reduced with the impact of the Covid-19 virus and the drop in the oil price.

“A successful implementation of the restructuring will enable the company to better meet the challenges of the current markets and position the company well for the coming years.”

04/01/2020