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Oceanteam agrees bond repayment

Understanding achieved on clearing the debt as part of restructuring

Oceanteam agrees bond repayment image

Offshore contractor Oceanteam has reached an understanding with its bond holders on the main terms of repaying outstanding debt.

In October, Oceanteam announced it would not meet interest payments on its senior unsecured bond, following the start of a financial restructuring process at the company.

As part of the financial restructuring, Oceanteam entered into talks with its banks and bond holders.

The company said the new terms will not include any equity offering by current shareholders, but “significant cash compensation” due to chief executive Haico Halbesma, also one of the company’s main shareholders, will be deferred as part of the agreement.

“Furthermore, there is an understanding for the use of proceeds from the sale of North Ocean 105 for repayment of vendors and of secured lenders of Oceanteam, as well as an understanding of a mechanism for repurchase of bond on an ongoing basis,” Oceanteam said.

Oceanteam chief financial officer Wilhelm Bohn said: “We expect to need another few weeks to finalize our talks with the bond holders.

“We have reached an understanding to repay the bond in full, to extend the loan maturity and to reduce the cash interest costs enabling.”

Halbesma said: “The understanding reached with the bond holders is a key step forward. It will allow the company to further develop its current market activities, to take advantage of new business opportunities, and thus to allow us to build long-term value for the benefit of all Oceanteam's stakeholders and employees.”

Image: Oceanteam

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