Norwegian seismic survey vessel owner PGS has gained a little more time to finalise a $1.2bn refinancing deal during a "dramatic negative market change" due to the Covid-19 pandemic.
PGS is trying to agree payment holidays relating to its $300m export credit facilities, a $350m revolving credit facility and a $520m term loan.
Talks with banks are now at an advanced stage, with the company describing them as "constructive."
The first priority is an extension of the Friday maturity of a $135m step down in its $350m revolver.
"The company believes that it is close to a solution that will achieve a significant extension of debt maturities and scheduled amortisation, and continues negotiations with the lenders with the aim of shortly finalising an overall solution," PGS said.
Maturity stretched
The expiration of the $135m tranche has been stretched to 25 September to give it time to clinch the deal.
In June, the company said it was laying up three vessels and making 40% of staff redundant as demand for its services shrank.
PGS then started lender talks in July in a bid to preserve liquidity.
The seismic vessel owner at that point raised the threat of loan defaults if it was not able to push back its repayment profile.
The Oslo-listed company reported a $111m bottom-line loss in the second quarter, which more than doubled the $48.9m in red ink reported a year earlier.
Also in July, a unit of US banking giant Goldman Sachs filed papers with the Oslo Stock Exchange revealing that it controls a 13% stake in PGS.
