Island Offshore begins restructuring talksCompany News // November 16, 2016
Island Offshore says Island Offshore Shipholding (IOSH) LP, acting through its general partner Amnor LLC, together with entities in which IOSH owns more than 50 per cent of the shares/ownership interest, is to formally address its long-term financing structure with the aim of restructuring the group’s balance sheet.
“The group has, as many others in our industry, during the last two years suffered from the general deterioration in the offshore service market," said IOSH. "The group has taken a number of measures to improve its financial situation but the continued deterioration/lack of improvement to the general market conditions necessitates a more structured approach to the financial and operational situation.”
In order to address the group’s long-term financing structure and debt service, it has initiated discussions with its finance providers. While these are ongoing, the group has decided, with effect from 14 November 2016 to temporarily halt all payments of amortisation to its secured finance providers. It will, however, continue paying interest on the debt to the finance providers as it falls due. The secured finance providers have been informed.
“In anticipation of the successful outcome of the discussions with our long-term finance providers, the group will continue to operate normally in all other respects and on the basis that all trade creditors will continue to be paid in full, and that the negotiations and deferral of amortisation described above will not have negative impact on any of the trade or non-finance creditors of the group,” said IOSH, which has retained Carnegie as financial advisor and Thommessen as legal advisor to assist with the process of restructuring.