Kjell Inge Rokke's Ocean Yield has agreed a standstill deal over charter payments with restructuring OSV giant Solstad Offshore.
The Oslo-listed shipowner said it had, together with the secured lenders to certain subsidiaries of Solstad that were previously part of the merged Farstad Shipping, entered into a six-month standstill period with respect to payment of interest, instalments and charter hire.
If cash in these subsidiaries exceeds NOK 300m ($34.66m) on a consolidated basis, the excess amount will be used for settlement of the delayed payments on a pro-rata basis.
"During the standstill period Solstad intends to implement a financial restructuring of the company," it added.
Ocean Yield will now consider if it is necessary to make an impairment of the book value of the 4,000-dwt AHTS pair Far Senator and Far Statesman (both built 2013), which it owns and charters to Solstad.
Ocean Yield owner Rokke has a 20% stake in Solstad.
Solstad said on Wednesday its bondholders had backed its debt suspension plans in a crucial vote.
The investors agreed to defer interest payments falling due under the NOK 1bn five-year bond expiring in 2019.
This agreement applies from 20 December and was a condition of a similar deal with its lenders.
But the bondholder assent is in turn conditional on a principal and interest suspension being agreed with the financial creditors of certain Solstad subsidiaries.
Solstad had earlier said it wanted to suspend interest and amortisation instalments on bank debt as it sought to boost liquidity in tough OSV markets.
It admitted it needed more money in October, as it faced up to a tough winter north Sea season, starting talks with banks and stakeholders to bolster its liquidity position.
It said the move was made despite signs of an improved market for offshore vessels.
Solstad also remained in compliance with its main financial covenants.
