Oslo-listed OSV operator DOF and its subsidiary DOF Subsea have entered into an agreement with a larger number of creditors as well as certain other stakeholders for a major financial restructuring.
The deal will, among other things, see debt of NOK5.7bn ($582m) converted into shares. The DOF companies have around NOK18.7bn in debt today, which will consequently be reduced to NOK13bn ($1.33bn).
Furthermore, the parties have agreed that DOF Subsea’s bond debt of NOK675m ($69m) will be moved into a new lending instrument maturing in December 2027, and also that most of DOF Subsea’s facilities will be merged into one syndicated loan.
Financially-troubled DOF has been working with banks and bondholders to restructure its debt since 2019. Møgster Offshore, DOF’s largest shareholder with 31.6%, has given its support to the restructuring, which minority shareholders have opposed for a long time, out of concern of being squeezed out in the restructuring process.
The restructuring will leave the current DOF shareholders with 4% of the company. Bondholders who convert to equities will have 53.3%, while other debt-converting creditors will be left with 42.7%, DOF said in a stock exchange filing.
DOF operates a fleet of 59 vessels, consisting of 15 anchor handling tug supply vessels, 14 platform suppliers, and 30 subsea vessels. In addition, the company has 73 remotely operated vehicles (ROVs).