Offshore seismic specialist SeaBird Exploration says it will propose a debt restructuring deal to bondholders and creditors that will facilitate a comprehensive restructuring of the company’s balance sheet.
The restructuring would see Seabird’s debt reduced by $22m and lease obligations reduced by $10.4m.
As part of the deal SeaBird is looking to convert to equity up to 81.5% of outstanding debt under a bond loan, up to 81.5% of unpaid and remaining charter hire for Munin Explorer owed to Ordinat Shipping under a bareboat charter agreement, and up to 81.5% of outstanding indebtedness under a credit facility for bunker purchases from Glander International Bunkering.
Completion of the restructuring is subject to the satisfaction of a number of outstanding conditions outside the control of the company, including the approval of the restructuring at a bondholders’ meeting, approval of the restructuring at an extraordinary general meeting of the company, and consent to the restructuring from Ordinat and Glander.
Completion of the restructuring is also reliant on no group entity entering into any insolvency procedures, whether voluntary or involuntary, and no enforcement action being taken by creditors for any material claim or bankruptcy of any group entity.
“Constructive discussions have been held over a significant period of time between the company and its restructuring advisors, and a significant number of the stakeholders whose consent to the restructuring are required. However, there are no guarantees that all consent requirements or other conditions for the restructuring will be fulfilled in an appropriate and/or timely manner,” the company said in a release.