Jacques de Chateauviex's Bourbon has been able to postpone its next interest payment on EUR 1.12bn ($1.38bn) in loans by 12 months through an agreement with bondholders.
The French owner received consent during a general meeting held today to delay the next installment of EUR 3.9m to 24 April 2019.
The bonds will bear interest from 24 October until that time in accordance with the bonds' applicable rate.
"The company is confident in its ability to find before year end a balanced solution with all its lenders -- often long-standing partners -- that suits all parties and allows the company to adapt its financing to its future development," the company said.
In mid-March, Bourbon said it was not in compliance with various loan covenants and its debt had been reclassified under current liabilities as it posted a EUR 576.3m loss for 2017.
The company, which is selling over 40 ships as part of a wider restructuring, has been in talks with lenders to balance debt service with the expected market recovery.
The postponement was sought as part of a general waiver to allow the group to withhold all payments.
"Aiming at enabling all parties to negotiate quickly within a secured legal framework, this general waiver, that the group is confident to obtain, also demonstrates the goodwill of all parties to achieve a satisfactory debt reshaping," Bourbon said.
During the negotiation period, the group has suspended servicing both its leases and debt commitments to focus on operational priorities and market turnaround.
