Stig Remoy-chaired shipowner Olympic Subsea has gained another month to seal a long-term refinancing of NOK 2.9bn ($335m) of debt.
The Norwegian owner of offshore ships has a deal in place with most of its banks, but a deadline to bring the remaining lenders on board expired on 31 August.
Now, the company has revealed that it has been given until the end of this month to seal an agreement.
This will be key to its ambition to pursue an initial public offering and buy more ships to expand more in the renewables business.
Olympic's total equity as of 30 June was minus NOK 497m, and interest-bearing debt related to the long-term financing of the fleet amounted to NOK 2.4bn.
The group also has bond obligations of NOK 320m and short-term debt of NOK 185m.
At end of the second quarter, nine of 10 vessels in the fleet were in operation.
Net profit was up at NOK 12.9m ($1.5m) from a loss of NOK 51.3m in 2020, as financial expenses fell.
Revenue grew to NOK 175.9m from NOK 137.5m the year before.
Olympic had earlier said in its annual report: "We will develop our fleet by upgrading and developing ... existing ships and by acquiring new medium-sized vessels which are both flexible and practical."
Markets to stay weak?
The company is expecting a seasonally weak market in the short term, with low demand and too many vessels available.
Olympic is trying to clear loan maturities until March 2023.
If a deal can be pushed over the line, interest costs will be reduced and principal repayments prior to maturity will be made through a group cash-sweep structure.
The refinancing will give the owner "sufficient liquidity" in excess of the agreed minimum cash covenant, Olympic said earlier.
The company has been in breach of bank loan agreements, which triggered a cross-default of the bonds in June 2020.
No change is expected in terms of the bonds, which will be converted into debt at or before maturity.
