Company Update

Siem Offshore Inc (the "Company") has made good progress in its restructuring discussions with the secured lenders in Europe and leading bondholders. The restructuring plan involves conversion of debt to equity and a reduction of future scheduled interest and amortisation payments. The restructuring will lead to a significant dilution of the existing equity.
 
The contemplated restructuring plan (the Plan) will significantly strengthen the Company’s balance sheet and create a stronger financial platform to continue to support our clients, preserve backlog and to meet the challenges in an extended downturn in the offshore supply market.     
 
The Company targets approval of the restructuring plan in January 2021. The Company plans to send a more detailed update and summons to a bondholders' meetings for the bonds SIOFF 01 and SIOFF 02 to approve the Plan in early January.
 
The Plan depends on participation by  the Company’s Brazilian banks (BNDES and Banco do Brasil). Several alternative solutions have been presented to the Brazilian banks. These solutions would ensure continued performance of the existing contracts in Brazil and support the credits provided by BNDES and Banco do Brasil. There is no guarantee of a constructive response from the Brazilian banks. Their support however, is in their interest and would preserve value for BNDES and Banco do Brazil. A rational behaviour therefore suggests that a contribution to the Plan by the Brazilian banks would be forthcoming. The alternative will be value destructive for the Brazilian banks.
 
For further information, please contact:
 
Dagfinn B. Lie
Chief Financial Officer
Siem Offshore Inc.
Phone +47 901 99 051
 
 
 

Published 28-12-2020 in the Investor category
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