Island Offshore, acting through its general partner Amnor LLC, said it will be looking into financial restructuring options as it suffered from the general deterioration in the offshore service market.
The Group said it has taken a number of measures to improve its financial situation but general market conditions requires a more structured approach to its financial and operational situation.
Namely, Island Offshore has initiated discussions with its finance providers, and said that while these discussions are ongoing it has decided to temporarily halt all payments of amortization to its secured finance providers. The Group will, however, continue paying interest on the debt to the finance providers as it falls due. The secured finance providers have been informed of such payment halt.
“The Group will continue to operate normally in all other respects and on the basis that all trade creditors will continue to be paid in full, and that the negotiations and deferral of amortization described above will not have negative impact on any of the trade or non-finance creditors of the Group,” Island Offshore said in its Oslo Exchange filing on Tuesday.
Island Offshore has retained Carnegie as financial advisor and Thommessen as legal advisor to assist in the process to address the restructuring of the long term financing.