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The crisis firm was unable to reach an agreement with its creditors in April, but now expects a restructuring agreement to be ready within the next week.
Lars Peder Solstad is the head of Solstad Offshore.
Berit Roald / NTB scanpix
published:,
Pressed offshore company Solstad Offshore, where John Fredriksen and Kjell Inge Røkke are the primary owners, arrives Thursday night with an update on the extensive negotiations it has had with creditors for the past year and a half, hoping to save to the indebted company.
Solstad notes that he has made clear progress with key stakeholders in the negotiations to achieve a restructuring.
New postponement
However, it takes more time to bring everyone together, the company writes.
Therefore, Solstad Offshore payment deferrals have been extended by all creditors, except one until May 8 inclusive, it is claimed.
The company hopes that a deal, which should have arrived today, will be in a week.
The offshore company is struggling hard after the oil crisis, which has slowed investments by oil companies, cut rates and put ships into circulation. The solution will result in a significant balance sheet restructuring, which will also dilute shareholders.
When the crisis solution was presented in late March, offshore analyst Turner Holm at Clarkson Platou commented:
– It’s a little too small, too late.
Also read
Analyst in Solstad rescue package: – A little too little, too late
Over 33 billion in debt
The shipping company became the country’s largest in 2017 after a merger of Solstad Offshore, Farstad Shipping and Deep Sea Supply in the wake of the oil crisis.
The main problem for Solstad Offshore and other offshore shipping companies is the combination of low rates and high debt, which means that they do not receive enough money to cover interest expenses and repayments.
The total interest-bearing debt of Solstad Offshore is now around NOK 33.5 billion.
The share is damaged on the Oslo Stock Exchange at a price of 0.43 SEK. This corresponds to a market value of NOK 126.5 million.
