Farstad secured lenders agree payments stand-still

DECEMBER 27, 2016 – Back in November, Norway’s Farstad Shipping ASA said it had signed a non-binding letter of intent with a company in the Siem Industries group for the financial restructuring of Farstad Shipping ASA, with Siem or a fund managed by Siem as a key equity investor.

The restructuring effort continues.

On December 20, Farstad said it was continuing efforts with a fund managed by Siem Industries to obtain a solid financial platform for the operations of the Farstad Shipping group.

“Constructive discussions are currently being carried out with all affected creditors. In order to preserve the liquidity reserves of the Farstad Shipping group, Farstad Shipping ASA and a majority of its subsidiaries have resolved to stop service of interest and amortizations to its financial creditors with effect from today. A vast majority of the financial creditors have in support of the ongoing restructuring confirmed that they will not enforce payment against the Farstad Shipping group in the current situation,” said a statement.

Today the company said that its secured lenders had agreed to a formal stand-still, involving a deferral of all amortizations and interest through the end of January 2017.