Solstad in talks with lenders amid liquidity concerns

Norwegian offshore vessel owner Solstad Offshore has decided to start negotiations with lenders and other stakeholders to improve the overall liquidity situation ahead of North Sea winter season, which is expected to be challenging. 

Solstad said in an Oslo Stock Exchange filing on Monday that, despite signs of an improved market for offshore service vessels and being in compliance with main financial covenants as per third quarter 2018, it is expected that the coming North Sea winter season will be challenging for the company’s liquidity position.

The company has therefore decided to begin negotiations with lenders and other stakeholders to improve the overall liquidity situation and to create a robust long-term platform. With this in mind, the vessel owner has appointed financial and legal advisors.

Initiating these negotiations will have no impact for operations, customers, employees or suppliers, Solstad concluded.

During the second quarter of 2018, Solstad’s overall cash position was reduced from NOK 1,469 million to NOK 1,371 million.

Solstad Offshore was previously known as Solstad Farstad, which was formed in 2017 through a merger between Solstad Offshore, Farstad Shipping, and Deep Sea Supply. The company changed its name from Solstad Farstad to Solstad Offshore in early October.

Solstad Offshore owns some 141 vessels with more than 4.000 employees, serving markets in Europe, Brazil, Australia, and Asia. The company’s head office is located in Skudeneshavn, Norway.