Bourbon seals ‘milestone’ deal with ICBC Financial Leasing

In parallel with the negotiations that have led to the rescheduling of a large part of its debt, embattled French OSV giant Bourbon also reached an agreement to restructure the rents payments under the leasing transaction entered into in 2013 and 2014 with China’s ICBC Financial Leasing.

This agreement provides a decrease by $240m of the overall cash payments made by Bourbon for the years 2016 to 2018 in consideration of which there is an extension of two years of the initial bareboat charter period at a rate of 8% together with more favourable commercial terms in favour of ICBC Financial Leasing.

Lease payments will be recognised on a straight-line basis as of the date of the lease term renegotiation and for the remaining lease term.

“This agreement is a new milestone of our action plan Stronger for longer which is aimed at making Bourbon more resilient in particularly difficult market conditions. Our resiliency also comes from customers’ preference for our vessels and operational performances, our diversified segments of activity and geographical footprint, as well as our local partnerships that improve access to markets,” said Jacques de Chateauvieux, chairman and CEO of Bourbon.