Island Offshore in financial restructuring move

FEBRUARY 24, 2016 — Responding to a press report, Island Offshore Shipholding L.P., in an Oslo Stock Exchange announcement today confirmed "that agreement in principle on the terms of a proposed restructuring has been reached with certain of its main lenders and an ad hoc group of bondholders in its NOK 700 million Senior Unsecured Callable Bond Issue 2013/2016 (ISIN NO 001 0673866).

Island Offshore Shipholding is controlled by the Ulstein and Chouest families.

"If approved by all relevant stakeholders, the restructuring will include, inter alia, extensions of certain of the company's and its subsidiaries' financial indebtedness (including the bonds), contribution of new equity in the amount of NOK 100 million from the company's shareholders, easement of financial covenants and certain amendments to the company's newbuilding schedule," continued the statement.

Island Offshore said it expects to publish the final details of the proposed restructuring before the end of February 2016, noting that "completion of the restructuring remains subject to final agreements with the relevant creditors, approval by the bondholders' meeting in the bond issue and execution of final documentation, and no assurance can be given that the contemplated refinancing will actually be completed."

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