Island Offshore sets late June date for completion of refinancing talksCompany News // June 1, 2017
Island Offshore in Norway says reaching an agreement with its creditors is taking longer than it originally anticipated.
Announcing unaudited results for the first quarter of 2017, Island Offshore said the downturn in the market has had significant implications for its cash flow and it had initiated negotiations for a standstill and deferral agreement with its secured creditors in November 2016.
The company says it presented “a holistic and comprehensive” restructuring proposal to secured lenders, which is still being evaluated by financial and legal advisors.
Selective measures representing parts of the proposal have already been implemented to facilitate and enable solutions for individual companies within the group. However, to date the group has not received formal waivers as requested from lenders and, to the contrary, all of its lenders have sent ‘reservations of rights’ letters.
“Negotiations with the secured lenders are progressing but establishing a sustainable long-term solution will take more time than initially anticipated,” said the company, giving a target closing date for the negotiations of 30 June 2017.