Offshore accommodation platform operator Prosafe has announced that it is having constructive discussions with its lenders to defer payments as it looks to ensure sufficient financial flexibility for the longer term.
The company has received consent from lenders to defer payments under the $288m facility from January 15 until February 13, while other identified defaults in the period have also been temporarily waived under both the $1.3bn and $288m facilities.
As part of the agreements, the company’s final payment of around $18.5m owed and due under the sellers credit to Cosco for the 2016-built Safe Notos has not been made.
The payment is subject to certain contractual subordination and coordination arrangements with the financial lenders, and discussions with Cosco on the payment is ongoing.
“As at the current time, the process with the creditors remains constructive and although there can be no assurances with respect to the outcome of the ongoing discussions, Prosafe remains hopeful that it will be able to agree a long-term solution in the near term. Pending this, the company continues to operate on a business as usual basis to protect and create value through challenging market conditions,” Prosafe said in a release.