Kjell Inge Rokke-owned Akastor is to sell a fleet of anchor-handling tug supply (AHTS) vessels handed over by restructuring joint venture partner DOF Group.
The Norwegian oil services investment company confirmed that it will assume full ownership of DOF Deepwater, taking over DOF's 50% holding as part of a debt reorganisation.
DOF Deepwater has been part of Akastor's legacy portfolio since it spun off from tycoon Rokke's Aker Solutions in 2014.
A term sheet has now been agreed with DOF Deepwater's banks that restructures debt to secure continued operations up to the second half of 2023.
When the NOK 1.04bn ($118m) of borrowings expires in three years, the five AHTS vessels the joint venture owns will be sold. Proceeds will be split 50-50 between the lenders and DOF Deepwater.
The ships are the 16,315-bhp Skandi Peregrino (built 2010), Skandi Emerald, Skandi Saigon, Skandi Pacific (all built 2011), and Skandi Atlantic (built 2012).
VesselsValue assesses the quintet as worth $35m.
Debt swapped into shares
Oslo-listed DOF has agreed standstill deals with most of its lenders to give it time to find a long-term financial solution in weak offshore vessel markets.
Half of DOF Deepwater's debt will be converted into equity, with the rest unchanged in terms of interest.
There will be no fixed instalments except an upfront repayment of NOK 20m.
Akastor chief executive Karl Erik Kjelstad said: "We are pleased to reach this agreement with the DOF Deepwater lenders, as it will give the company a predictable and viable financial structure for the coming three years.
"DOF Deepwater operates in a market which remains challenging, but with this financial structure and the relative modern and versatile fleet, the company should be well positioned to remain as a market player and thereby secure revenue in a more normalised market in the future."
DOF Deepwater will be consolidated into Akastor as a subsidiary called DDW Offshore.
Obligation
DOF said: "The closing of the debt restructuring is conditional upon necessary support from DOF's secured lenders."
Akastor will assume full operational responsibility, but DOF will continue as vessel manager for the fleet.
However, the terms of the management deal will be "discussed", DOF said.
And the terms of DOF's unsecured guarantee obligation for half of the DOF Deepwater debt will be separately agreed between the group and its banks.
This amount will also be reduced by any profit from the ship sales.
Ocean Yield owner Rokke is also a shareholder in restructuring Norwegian offshore shipowner Solstad Offshore.
