Solstad bondholders agree to suspension of debt payments

Bondholders of Norwegian offshore vessel owner Solstad Offshore have accepted the company’s proposal for temporary suspension and deferral of interest and amortizations on financial debt. 

Expecting a challenging winter season in the North Sea, Solstad in late October decided to begin negotiations with lenders and other stakeholders to improve the overall liquidity situation.

Solstad in early December started negotiating a potential agreement whereby interest and amortizations on financial debt of the Solstad Offshore group would be temporarily suspended and deferred starting December 20, 2018. The company also scheduled a bondholders’ meeting to ask for their consent for temporary suspension and deferral of interest and amortizations on financial debt.

The meeting was held on Wednesday, December 19. After the meeting, Solstad said that the bondholders had accepted to suspend and defer payments of interest falling due under the bond agreement in the period starting December 20, 2018.

Solstad also added that the bondholder’s suspension and deferral is conditional on a principal and interest suspension being agreed with the financial creditors of relevant subsidiaries of SOFF and will be valid for the corresponding period.

Offshore Energy Today Staff