EuropeFinance and InsuranceOffshore

Viking Supply proposes standstill agreement with bondholders

Oslo-listed Viking Supply has called a meeting to propose a standstill agreement that would stay its financial obligations to bondholders until April 13, while it tries to improve its liquidity.

The agreement relates to investors in Viking’s senior unsecured open bond issue 2012/2017, for which the next interest payment was due on March 21.

The March 21 payment will be made on Wednesday and will be partly paid with NOK 3.6m ($430,000) in cash and with NOK 5.57m ($660,000) in newly issued bonds.

Bondholders will decide whether to effect the proposed standstill agreement at a meeting to be held on April 8.

Viking has extended the standstill agreement it has with its banks until April 13, from March 20 previously. The proposed agreement with its bondholders will be conditional upon the standstill remaining in force with Viking’s senior secured lenders.

“The company’s liquidity position is strained and in the current market the earnings potential does not match the financial obligations, including the amortisation schedule. Furthermore, despite a positive operating result, the company is unable to fulfill existing covenant undertakings in its loan agreements,” Viking said in a release today.

It added that it is working with its lenders to find a “long-term solution” to its liquidity problems.

Tags

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.
Back to top button
Close
Close