UK-based Altera Infrastructure, formerly Teekay Offshore, has emerged from the chapter 11 process in the United States Bankruptcy Court for the Southern District of Texas after consummating its plan of reorganisation.
The restructuring addressed more than $1bn of secured and unsecured holding company debt, $400m of preferred equity, and $550m of secured asset-level bank debt. The Brookfield Asset Management-controlled company said the move comprehensively reprofiled its bank loans to better align cash flow with debt service obligations and equitised more than $1bn in junior debt obligations.
The restructuring also enabled Altera to strike a deal with Equinor for a bareboat charter for the Petrojarl Knarr FPSO vessel, which served as one of the key drivers in the restructuring. The FPSO is set to be deployed for the Rosebank field development project, pending final investment decision and regulatory approvals. The Equinor Contract is firm for nine, with options up to a total of 25 years.
Altera has a fleet of 37 vessels, including FPSO units, shuttle tankers, floating storage and offtake units, long-distance towing and offshore installation vessels and a unit for maintenance and safety. The majority of its fleet is employed on medium-term contracts.
