Prosafe still in talks with lenders for long-term financial solution

Offshore accommodation services provider Prosafe is still working with its lenders to come up with a financial solution to ensure the company’s long-term stability.

Prosafe previously reported it had received consent for temporary payment deferrals and waivers of certain identified defaults under the company’s $1.3 billion and $288 million facilities. These deferrals and waivers have now expired.

However, Prosafe said on Wednesday, the company’s discussions with its lenders remain constructive and the efforts to create and agree a long-term solution and runway continue.

Pending conclusions of these discussions, Prosafe has agreed a forbearance from the non-payments and defaults from a majority of its lenders across its two loan facilities. The forbearance has initially been granted for a period until April 15, 2020, but can be extended by the lenders by a simplified process.

As part of this, the company will continue to defer making payments of scheduled instalments and interests under both facilities.

Similarly, Prosafe said that the payment of the final instalment owed and due under the seller credit to Cosco for the Safe Notos, remains as reported on February 13 subject to ongoing discussions with Cosco and the lenders.

According to Prosafe, the forbearance shows support for the company to continue to operate, while lenders reserve their rights, and secures stability for the company while it continues to work with the lenders to agree on a long-term financial solution.

Pending this, the company continues to operate on a business as usual basis to protect and create value through challenging market conditions, Prosafe concluded.

It is also worth reminding that Prosafe’s proposed merger with Floatel fell through amid financial uncertainty and regulatory objections. The merger would have created the world’s largest offshore accommodation company.