Viking Supply Ships is taking a final restructuring proposal to bondholders having signed an agreement with banks to delay $215m in repayments.
Christen Sveaas-backed Kistefos, the company’s main shareholder, is ready to inject $13m as part of a $17.6m arrival of risk capital, according to a plan outlined today.
In all the rescue package is worth $273m. The hurdle for Viking remains to win the backing of bondholders who have been demanding the repayment of their debt.
As TradeWinds reported last week Viking warned bondholders they would end up with very little should they stick to their stance and tip the company into bankruptcy.
Firm plan with banks
In a statement today Viking said banks had firmed a previously announced term sheet to support a restructuring, which will push loan maturities into 2020 and cut amortization payments by 90% to $54m.
After six months of restructuring talks the company has also succeeded in taking down repayments on the Odin Viking to a maximum of $10,000 per day until 2024.
Bondholders must now decide if they are open to the new offer.
Viking says the repayment of bonds as the investors wish is not possible given the downturn in the offshore support vessel market.
Instead it is planning to convert 50% of the bond debt into equity in listed parent Viking Supply Ships AB with the balance retained at a revised coupon and with extended maturity.
Bondholders will vote on the proposal later this month, with a rights issue scheduled for August and a final completion date pencilled in for 30 September.
Viking says the plan will provide a solid foundation for continuing the business and withstanding a challenging market.
The owner of anchor handlers and PSVs posted a loss of $4.1m in the first quarter of 2016 to follow a $40m deficit in fiscal 2015.
