Island Offshore has reached an agreement in principle on the terms of a proposed restructuring with certain of its main lenders and an ad hoc group of bondholders in its NOK 700 million senior unsecured callable bond issue.

The company informed on Wednesday that if approved by all relevant stakeholders, the restructuring will include, inter alia, extensions of certain of the company’s and its subsidiaries’ financial indebtedness (including the bonds), contribution of new equity in the amount of NOK 100 million from the company’s shareholders, easement of financial covenants and certain amendments to the company’s newbuilding schedule.

The company said it expects to publish the final details of the proposed restructuring before the end of February 2016.

Furthermore, completion of the restructuring remains subject to final agreements with the relevant creditors, approval by the bondholders’ meeting in the bond issue and execution of final documentation, and no assurance can be given that the contemplated refinancing will actually be completed, the company said in today’s Oslo Stck Exchange filing.