Davie Yards secures loanYard News // November 11, 2008
Davie Yards in Canada, which is building offshore vessels and accommodation vessels for the offshore industry, has entered into a loan agreement with Investissement Quebec pursuant to which Investissement Quebec has agreed to provide Davie with a C$10 million loan.
The loan has a term of 48 months, bears interest at a rate of 9 per cent per annum and is secured against certain claims and accounts receivable of Davie.
The loan is provided under the Strategic Support for Investment Programme (PASI), administered by Investissement Quebec.
"We are pleased to see the continued support from Investissment Quebec and the Quebec Government through their PASI-program, and we believe that the company now is significantly closer to securing the long-term activity at the yard," said Steinar Kulen, Davie CEO.
In addition, the company has amended the existing Loan agreement with Offshore Holding, increasing the loan by NKr 5.9 million (C$1,116,667), all terms according to the original Loan Agreement.
Offshore Holding is the controlling shareholder of Davie Holding AS, which holds 71.88 per cent of the common shares of the company.
The loan is a related party transaction for the purpose of Multilateral Instrument 61-101, and the company is relying on exemptions from the formal valuation and minority approval requirements of Multilateral Instrument 61-101 based on a determination of financial hardship.