Singapore offshore vessel operator Marco Polo Marine has proposed a refinancing and debt restructuring exercise of all its current secured and unsecured debts to strengthen its cash flow and working capital position.
The company said the move is to ensure its business sustainability under current distressed market condition for the foreseeable future.
In the meantime, the company plans to delay interest payment on notes that are due to be paid on April 18.
“In view of the company’s current cashflow position and proposed refinancing and debt restructuring exercise, the company does not expect to make payment of the April 2017 interest payment on April 18 as the monies earmarked for this have been redeployed to working capital for business sustainability,” Marco Polo Marine said in a release.
According to the company, it is in discussions with its bank lender and other key creditors on restructuring the payments under the proposed debt restrucuturing plan that is within an acceptable level of gearing for the offshore marine industry, while at the same time exploring avenues for fresh funding. It will also engage noteholders on various options in connection to the notes.
In October 2016, Marco Polo Marine’s noteholders voted to approve a restructuring S$50m ($36m) of the company’s debt.