High Shipping Costs Are Here to Stay, Says Bloomberg
By Henry Ren (Bloomberg) Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers....
Norway-based offshore services company Farstad Shipping on Thursday announced the outline for comprehensive financial restructuring with Siem and its secured lenders. Here is the rundown from Reuters:
Nov 24 (Reuters) – Farstad Shipping ASA :
* Announces outline for comprehensive financial restructuring with Siem and its secured lenders
* Will issue a minimum of 702 million shares for a total subscription of minimum 1 billion Norwegian crowns ($115 million) at a price per share of about 1.4245 crowns
* Following the announcement, Farstad shares plunge 38 pct by 1218 GMT to NOK 3.70
* Siem Oilservice Invest Holdings Limited will underwrite 1 billion crowns of cash issue
* Siem Oilservice Invest Holdings Limited will carry out a mandatory offer for existing shares of Farstad
* Bondholders in Farstad’s bond loans will be requested to convert all outstanding amounts, in total NOK 1.4 billion, under the bond loans into equity in Farstad
* Tyrholm & Farstad as, the largest shareholder of Farstad, will be offered a preferential right to subscribe 105,300,000 new shares for a subscription of 150 million crowns
* The rest of the new shares will be offered to a mix of existing shareholders and other stakeholders to be finally agreed
* Says substantial majority of the senior secured lenders are supportive to the binding term sheet. The senior secured lenders will be requested to convert parts of the group’s secured debt into equity in Farstad, and provide amortisation deferrals so as to provide the company with a financial runway throughout 2021
* Says certain other creditors will also be requested to contribute in the restructuring
* Says head office and centre of operation of Farstad will remain in Aalesund
* Term sheet subject to reaching final agreements with other key Farstad stakeholders including the senior secured lenders, the bondholders and certain other creditors. Farstad is continuing its negotiations with these stakeholders Source text for Eikon: Further company coverage: ($1 = 8.5724 Norwegian crowns) (Gdynia and Oslo Newsrooms)
Farstad Shipping’s fleet currently consists of 55 vessels (27 AHTS, 22 PSV and 6 SUBSEA) and 1 SUBSEA vessel under construction. The company’s operations are managed from Aalesund, Melbourne, Perth, Singapore, Macaé and Rio de Janeiro with a total of 1,725 employees engaged onshore and offshore. The company’s strategy is to be a leading quality provider of large, modern offshore service vessels to the oil industry.
(c) Copyright Thomson Reuters 2016.
Join the 67,771 members that receive our newsletter.
Have a news tip? Let us know.