Kristian Siem-backed Siem Offshore is seeking more time from bondholders to allow the company to clinch a long-term restructuring of its $1bn debt pile.
The Oslo-listed offshore support vessel owner has called a meeting of noteholders to approve a waiver of financial covenants up to 31 December.
In June, it won a waiver until 30 October, but has now admitted it is unlikely to reach a final refinancing agreement by then.
"Discussions and negotiations on the restructuring of the group are still ongoing, including with leading bondholders," Siem Offshore said.
"Progress continues to be made."
Default warning
Siem Offshore will be in default if the bond proposals are not accepted.
"A default on the bond terms will lead to increased uncertainties related to the going-concern status of the group, which, in turn, may jeopardise the ongoing restructuring discussions with respect to not only the bondholders, but potentially also the secured lenders," the shipping company warned.
Siem Offshore reiterated it is not allowed to make payments to bondholders under the terms of the deferred payment deal with banks.
This standstill arrangement with lenders is valid until 30 April of next year.
An unnamed financial advisor is helping Siem Offshore restructure and build a robust and solid balance sheet and develop a business plan for the next five years, the company has said.
'Orderly' process
The objective for next year is to improve the recoverability of bank and bondholder loans through an orderly reorganisation of the balance sheet.
Siem Offshore has 33 vessels, with six in lay-up.
The firm contract backlog stood at $567m at 30 June.
Over the last five years, the company has cut its fleet from 46 to 32 vessels and reduced debt by $500m. Bond debt stood at $111m earlier this year.
Siem Offshore has made $600m in impairments since the downturn started in 2015.
