Siem Offshore, a Norwegian shipping company, is asking for help from banks to ensure its survival through the downturn.

In preparation for an extended downturn in the offshore supply market the company has issued a request to its banks for instalment relief and certain other changes to its bank loan facilities to ensure that the company is able to service its debt obligations through the downturn.

Furthermore, Siem will issue notices for bondholder meetings in the two unsecured bond issues SIOFF01 and SIOFF02 for the bondholders to consider a proposal where the bonds will be exchanged at 80% of par value to a convertible bond with five and a half years maturity, 2% cash interest and a NOK 3 conversion price, the company said.

At the same time, Siem is considering strategic alternatives for its cable lay business Siem Offshore Contractors GmbH and is in negotiations with a potential buyer for this business.

The outcome of these negotiations is not yet known and there is no certainty that a transaction will take place, the company added.