Island Offshore reaches agreement in principle for restructuringCompany News // February 26, 2016
Island Offshore Shipholding LP has confirmed that it has reached an agreement in principle on the terms of a proposed restructuring. The agreement with its main lenders and an ad hoc group of bondholders covers its NKr 700 million Senior Unsecured Callable Bond Issue 2013/2016 (ISIN NO 001 0673866).
If approved by all relevant stakeholders, the restructuring will include, inter alia, extensions of certain of the company's and its subsidiaries' financial indebtedness (including the bonds), new equity in the amount of NKr 100 million from the company's shareholders, easement of financial covenants and certain amendments to the company's newbuilding schedule.
The company expects to publish the final details of the proposed restructuring before the end of February 2016. Completion of the restructuring remains subject to final agreements with the relevant creditors, and approval by a bondholders' meeting. The company said no assurance can be given that the contemplated refinancing will actually be completed.