OCTOBER 22, 2018 — Underscoring the continuing toughness of the offshore services sector, Solstad Offshore ASA says it is to start talks with its lenders.
Solstad Offshore ASA was created by the June 2017 merger of the Norwegian ship owners Solstad Offshore, Farstad Shipping, Deep Sea Supply and Rem Maritime. Up until the beginning of this month, its name was SolstadFarstad ASA.
That merger came about in response to a prolonged downturn in demand.
In a stock exchange announcement today, the company said:
Despite signs of an improved market for offshore service vessels and being in compliance with main financial covenants as per third quarter 2018, it is expected that the coming North Sea winter season will be challenging for the company’s liquidity position.
It has therefore been decided to commence negotiations with lenders and other stakeholders to improve the overall liquidity situation and to create a robust long-term platform for the company.
Initiating these negotiations will have no impact for operations, customers, employees or suppliers.
The company has appointed financial and legal advisors.