Siem Backs Out of Farstad Rescue Deal

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Farstad Shipping and Siem Oil Service Invest (SOSI) informed that the companies have not succeeded in finding a solution for the restructuring of Farstad which is acceptable to all affected creditors.

Farstad has for a period of time negotiated with its key creditors to obtain a financial restructuring of the group supported by SOSI.

However, the term sheet between Farstad and SOSI has terminated, and Farstad will pursue other alternatives for its financial restructuring in continued cooperation with its key financial creditors, the company said.

With a view to preserve liquidity, Farstad and a majority of its subsidiaries will uphold their current suspension of service of financial debt.

The companies’ standstill agreement with their secured lenders ending on January 31, 2017 will remain in force.

“The Farstad Shipping group will otherwise maintain operations as a going concern. All suppliers and trade creditors will be paid in their ordinary course,” the company said.

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