Olympic Ship gains standstill with secured lenders through Nov. 11

By Susanna Moon

Chicago, Oct. 31 – Olympic Ship AS again extended its standstill agreement with its secured lenders, this time through Nov. 11.

Olympic Ship “is in advanced discussions” with secured lenders and investors and has begun talks with some of its bondholders.

The standstill has been extended “to provide further time to secure a long-term solution for the benefit of all stakeholders,” according to the company update.

Even with the continuing support of secured lenders, however, there is no assurance that a “solution can be found with the relevant stakeholders in a timely manner. Furthermore, even with the continued support the group might from time to time be in breach of certain of the covenants in its financing agreements,” the company said.

The company said on Oct. 17 that, as part of the standstill agreement, “the group will continue to pay interest to the finance providers and the secured lenders have agreed to further postpone all amortization and maturities during the standstill period.”

The standstill has now been extended from Oct. 28, Oct. 21, Oct. 14 and from Sept. 30.

The company said on Oct. 14 that a consortium of local investors will invest NOK 500 million in the business of the restructured Olympic group of companies, of which about NOK 400 million is new liquidity.

The investment is contingent on the group’s planned restructuring, which requires approval from finance providers, according to a previous company notice.

The consortium includes companies controlled by the main shareholder of the company, Stig Remoy, with the remaining investors having direct or indirect connection to the maritime cluster in Sunnmore, Norway, the release noted.

Current shareholders will be invited to participate in the stock issue on equal terms, the release said.

As announced Oct. 3, the company is holding talks with its secured lenders in an aim to adjust the repayment profile of its financial debt.

As part of the standstill agreement, the Olympic Ship group agreed to continue to pay interest to the finance providers, and the secured lenders agreed to postpone all amortization and maturities during the standstill period, as previously announced.

The group’s liquidity remains stable, the company previously said.

Fearnley Securities and Ernst & Young are serving as financial advisers and Wiersholm as legal adviser to assist the company in finding a long-term financing solution for the group.

Olympic is a Fosnavag, Norway-based shipping company.

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