Shipowning firm Ocean Yield and Solstad Offshore have agreed to additional lengthen the standstill interval for 2 anchor handlers.
Ocean Yield mentioned final week that its subsidiary, F-Shiplease, had agreed to increase the standstill interval with Solstad Offshore for the Far Senator and Far Statesman AHTS vessels as much as and together with eight May 2020.
Solstad and Ocean Yield initially entered into the standstill settlement again in December 2018.
At the time, Ocean Yield secured lenders to sure subsidiaries of Solstad Offshore that beforehand have been a part of the Farstad Shipping Group and entered right into a six-month standstill interval with respect to cost of curiosity, instalments, and constitution rent.
During the standstill interval, Solstad Offshore meant to implement a monetary restructuring of the corporate. However, as Solstad’s restructuring negotiations weren’t accomplished throughout the six-month interval, the 2 firms in June 2019 entered into an extension of the standstill interval as much as and together with 31 October 2019.
After that extension expired, the 2 firms agreed one other extension in October 2019, which expired on 31 March 2020. The standstill interval was prolonged once more, this time till 30 April.
At the time of
the earlier extension, Solstad introduced a brand new restructuring define underneath which
Solstad and Ocean Yield agreed that the prevailing lease agreements of F-Shiplease
shall be terminated and changed by new lease agreements with a length of 4
years, with sure cancellation choices in favour of F-Shiplease throughout the
time period of the charters.
charge payable underneath the brand new lease agreements shall be a reference charge equal to
the typical per vessel EBITDA in a pool of seven related UT731 design vessels.
industrial precept of the brand new lease agreements shall be that F-Shiplease will
carry all upside and draw back from the operation of its vessels throughout the
constitution interval. Solstad will solely obtain value protection for its operation of
The remaining estimated internet declare of F-Shiplease following the termination of the prevailing lease agreements shall be transformed into shares in Solstad utilizing the identical conversion charge as that used for the conversion of the debt to the secured lenders of Solstad.
Image supply: Wikimedia; Author: Bahnfrend – underneath the CC BY-SA four.zero license
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