Norway’s Rem Offshore has detailed plans of a restructuring after months of discussions with banks, bondholders and major shareholders.
The company said the restructuring will “create a financial runway” for the company through to the end of 2019, allowing for a worst case scenario in terms of vessel utilisation. The restructuring is expected improve the company’s liquidity by around NOK 3.6bn ($420m) over the same period, and reduce interest bearing debt by around NOK 900m ($105m).
Key parts of the restructuring includes a new private placement of NOK 150m, the conversion of NOK 513.5m in senior unsecured bonds to shares, a reduction of amortisations on all bank facilities with all bank maturities extended by 42 months in addition to amended financial covenants, and the cancellation of an AHTS newbuilding with Vard in exchange for equity.
The restructuring information also reveals that Åge Remøy, the company’s largest shareholder, is contemplating a reduction of shareholding in thecomany prior to completion of the restructuring.
