Farstad Shipping has announced that its secured lenders have agreed to a formal standstill involving a deferral of all amortisations and interest throughout January 2017.
Farstad announced a move to stop paying its creditors last week while a takeover by Siem Industries is finalised.
Siem announced the takeover of Farstad last month, which will see Farstad issue a minimum of 702m ordinary shares for a total subscription of minimum NOK1bn ($117m) at a price per share of approximately NOK1.4245. Siem will underwrite NOK1bn of the cash issue, and subscribe for and be allocated a minimum number of new shares so that Siem owns 50.1% of the shares in Farstad, post restructuring.
Kristian Siem has been one of Norway’s leading champion consolidators in the offshore scene in the past 18 months.