Farstad deal with Siem falls apartNews // January 5, 2017
Farstad Shipping in Norway says it has been unable to conclude an agreement with Siem Oil Service Invest that was acceptable to all of its creditors and has been forced to begin looking at other options.
In a statement, Farstad said: "Farstad Shipping has been negotiating with its key creditors to obtain a financial restructuring of the Farstad Shipping group supported by Siem Oil Service Invest (SOSI). Farstad and SOSI have not succeeded in finding a solution for the restructuring which is acceptable to all affected creditors."
As a result, the term sheet between Farstad and SOSI has been terminated, and Farstad will pursue other restructuring alternatives. The company said it would do so "in continued cooperation with its key financial creditors."
In order to preserve liquidity, Farstad and a majority of its subsidiaries have stopped servicing their debts. The companies' standstill agreement with secured lenders, which ends on 31 January 2017, will remain in force.