Farstad issues update on talks with Siem Industries - to stop making interest paymentsCompany News // December 21, 2016
Referring to earlier announcments about its financial situation and a term sheet signed with entities led by Kristian Siem, Farstad in Norway says that although a term sheet with Siem Industries has formally lapsed, Farstad Shipping and Siem Oil Service Invest Limited (a fund managed by Siem Industries) are continuing joint efforts to obtain a solid financial platform for the operations of the Farstad Shipping group.
"Constructive discussions are currently being carried out with all affected creditors. In order to preserve the liquidity reserves of the Farstad Shipping group, Farstad Shipping and a majority of its subsidiaries have resolved to stop service of interest and amortizations to its financial creditors," said Farstad.
The company said the vast majority of its creditors have supported the ongoing restructuring and confirmed that they will not enforce payment against the Farstad Shipping group in the current situation.
The company said it will maintain operations as a going concern. All suppliers and trade creditors will be paid in their ordinary course.