Offshore accommodation specialist Floatel International has revealed new contracts in Norway and an agreement with creditors that will allow it to move ahead with its debt restructuring efforts.
The Gothenburg headquartered company said in a regulatory filing on Sunday that it has been awarded three contracts on the Norwegian continental shelf.
The first contract, signed with Var Energi, will begin in June. The charter is for a period of three months and includes options thereafter.
Two contracts with Equinor will begin in April next year. One will see an accommodation rig stationed on the Breidablikk field for four to six months, while the second will see a similar vessel deployed on the Johan Sverdrup Phase II field for five to eight months.
Floatel has yet to nominate specific vessels the contracts, and pricing details were not disclosed.
Constructive discussions
At the same time, Floatel revealed that “constructive discussions” with its 49.9% shareholder, Keppel Corp’s FELS Offshore, and first and second level bondholders, have concluded with an agreement that will deliver full discharge of security over bank vessel assets.
The lock-up agreement will, in broad terms, entail a corporate reorganisation of the Floatel group of companies, where the entities owning and operating the semi-submersible accommodation and construction support vessels Floatel Reliance, Floatel Superior (both built 2010), Floatel Triumph (built 2016) and Floatel Victory (built 2013) and their other assets as well as certain Floatel group entities that provide operational and management functions, will be acquired by a newly established company registered in Bermuda.
“Upon completion of the collateral discharge agreement, which is envisaged to occur in February 2021, the vessel Floatel Endurance (built 2015) will remain with the group, cash in the blocked accounts and other assets retained by the relevant group company and any and all claims of the lenders against the group including the $115m owed in principal, interest and fees under the bank vessel facility and the revolving credit facilities shall be fully and unconditionally released,” the company said.
Floatel said the transaction would be for the benefit and security of all stakeholders including current and future customers, suppliers, offshore and onshore personnel as well as shareholders and secured financial creditors.
“As before, those vessels that are on charter, including the Floatel Endurance, currently at the Martin Linge field, can continue to operate as normal. Retaining the Floatel Endurance further enhances the ability to sign and deliver new assignments as well as secure the future of the business," it said.
