Solstad Offshore Chief Executive Officer Lars Peder Solstad
Skudeneshavn, Norway, headquartered Solstad Offshore ASA reported the other day that a bulk of its financial institutions– consisting of protected loan providers, renting firms, commercial investors and also vital shareholders– have actually developed an usual strategy to settle settlements on the basis of a restructuring synopsis.
Under the synopsis, on conclusion of the restructuring, the business’s existing shares will certainly stand for 0.4%, and also transformed financial obligation will certainly stand for a minimum of 65-75% of the business’s shares.
Under the synopsis, about NOK 10 billion (regarding $971 million) of financial obligation will certainly be exchanged equity. The financial obligation transformed to equity contains protected financial obligation, renting responsibilities, bond responsibilities and also various other unprotected financial obligation. All financial obligation transformed to equity will certainly have the exact same conversion price.
The team’s fleet will certainly be redoubled and also 37 vessels of its older and also much less advanced vessels will certainly be marketed or junked over an amount of time. The long-term service of the team will certainly be based upon a core fleet of about 90 vessels.
Existing commercial investors consisting of Lars Peder Solstad and also firms regulated by him will certainly remain to sustain the business, and also will certainly be supplied to subscribe for shares so regarding maintain a possession of approximately 1/3 of the shares in the business on conclusion of the restructuring. The shares to be subscribed by the commercial investors will certainly undergo a secure duration. The continuing to be investors will certainly be supplied to subscribe for shares so regarding maintain a complete possession of approximately 2%. The overall registration quantity for the shares in factor to consider for money (to stand for approximately 35% of the shares of the business uon conclusion of the restructuring) will certainly depend on about NOK 70 million (regarding $6.8 million).
“Passing this milestone means that we continue to operate Solstad Offshore ASA in a controlled manner in these challenging times, with predictability for our employees and clients word-wide. The discussions with the stakeholders are constructive and we look forward to work with the parties with a view to agree on the restructuring over the next weeks,” claims Chief Executive Officer Lars Peder Solstad.
