Viking Supply Ships has announced that it is in breach of its covenants under loan agreements with its banks.
Citing weak market conditions, the company has breached its twelve month rolling EBITDA ratio and is now in dialogue with its banks to find a solution. It will need a capital injection to be compliant with its loan agreements and ensure it has sufficient working capital going forward.
Viking is calling an extraordinary general meeting of shareholders to propose a rights issue looking to raise SEK120m ($15m).
Majority shareholder Kristefos will vote in favour of and subscribe to the rights issue. Kristefos currently holds 75.3% of all shares.
The rights issue will be be carried out during the fourth quarter of 2017 and funds will be reinvested subject to certain conditions being met by the company’s banks.
