Hermitage Offshore is tacking another 10 days onto the end of its early July forbearance agreement with two major lenders.
The Scorpio Group-backed offshore vessel owner announced the extension, on a $133m loan provided by DNB Bank and SEB, after trading closed in New York on Monday.
"While the extension of the forbearance agreement does not address the long-term liquidity and restructuring needs of the company ... the lenders have agreed to forbear from exercising any of their rights and remedies" until 10 August, Hermitage said.
Like much of the offshore sector, Hermitage has felt significant impacts from the coronavirus outbreak and rock-bottom oil prices in a year where observers expected a recovery after a multi-year downturn caused by the latest oil price collapse.
In June, the company said its future was in doubt alongside a $6.8m loss — at least its ninth consecutive quarter in the red.
Then, it said it was in talks with lenders. It has since retained Perella Weinberg Partners and Snapdragon Advisory as financial advisors and Proskauer Rose as legal counsel as it explores options.
The company owns 10 platform supply vessels, two anchor handling tug supply vessels and 11 crewboats.
The Scorpio Group, with shipping power players Emanuele Lauro and Robert Bugbee at the helm, took control of the company, then Nordic American Offshore, from Herbjorn Hansson in December 2018.
It took on the Hermitage moniker in June 2019, with Lauro announcing a $20m refinancing deal made the company "well positioned" in a market poised for improvement.
The company announced the forbearance agreement on 9 July.
On Monday, Hermitage's shares rose about $0.10 to $0.80. In after-hours trading, they climbed slightly to $0.82.
