EuropeFinance and InsuranceOffshore

DOF seals debt restructuring deal

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).

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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