UAE-based lifeboat owner Gulf Marine Services has been awarded two contract extensions for two K-Class vessels totalling 13 months.
The extensions are with an EPC contractor in the UAE and increase the company’s fleet utilisation for 2021 to 75%, compared to 66% at the same tine last year.
Mansour Al Alami, executive chairman of GMS, said: “We enter 2021 with a significant improvement to the secured utilisation position than we did last year, which is encouraging and gives us added comfort for the year ahead. It is equally encouraging to have contracts extended by our clients as it demonstrates the strong relationship we have with them and their willingness to work with GMS going forward.”
GMS also revealed that it has been given breathing space by its banks in regards to discussions to improve its debt structure, with an extension granted for certain obligations including the issuing of warrants to the banks.
“This extension provides the time for the parties to conclude and formally document proposed changes to the following (among other matters): the timing and targeted quantum of new equity to be raised, the pricing of the debt, and the timing and conditions to be met, to avoid any payment of PIK interest and issuance of any warrants,” GMS said in a statement.