DOF Group is making progress on its $2.2bn refinancing but is still seeking an extension to standstill agreements with bondholders and banks.
The Oslo-listed offshore support vessel owner is trying to finalise a long-term restructuring of its debt in weak markets exacerbated last year by Covid-19 restrictions and the low oil price.
A freeze on repayments had been agreed until 30 June, but the company is now seeking to extend this to 31 August, with an option to stretch this to 30 September if necessary.
Investors in three bond series totalling NOK 1.175bn ($138m) will meet on 30 June.
DOF said talks remain ongoing. "However, further discussions and negotiations will be required to determine whether an agreement for an overall restructuring of the DOF group can be found," the shipowner added.
Bond trustee Nordic Trustee told bondholders: "Progress has been made in such negotiations."
DOF called its refinancing challenging in its first quarter report.
"The debt restructuring proposals currently discussed include conversion of debt to equity, which...will have a significant adverse effect for the current holders of the equity," the shipowner said.
Loss reduced
The net loss in the three months to 31 March was NOK 801m, down from a loss of NOK 4.1bn in 2020.
Revenue dropped to NOK 1.5bn from NOK 2.1bn.
The average utilisation of the group's owned fleet during the first quarter was 67%, against 81% in 2020.
DOF has noted increased activity in the Atlantic region, but reduced utilisation in Asia-Pacific and North America.
There has been high activity in Brazil, but operations have been impacted by several vessel mobilisations and Covid-19.
"There are signs of increased activity from 2022, however the timing of a recovery is highly uncertain," DOF said.
