Terms not defined herein have the meaning given to them in the press release issued by the Company on 5 December 2020
The Company is pleased to announce that the constructive discussions with the Lenders have concluded with an agreement that will deliver full discharge of security over the Bank Vessel Assets (the “Collateral Discharge Agreement”). The Collateral Discharge Agreement has the approval of a significant majority of the Company’s shareholders and the 1L Bondholders and 2L Bondholders that are party to the Lock-Up Agreement.
Completion of the Collateral Discharge Agreement is conditioned upon securing and satisfying all conditions precedent to the New RCF which will be drawn in part to fund a settlement payment of USD 46,000,000 to the Lenders under the Collateral Discharge Agreement. Upon completion of the Collateral Discharge Agreement, which is envisaged to occur in February 2021, the vessel “Floatel Endurance” will remain with the Group, cash in the blocked accounts and other assets retained by the relevant group company and any and all claims of the Lenders against the group including the USD 115 million owed in principal, interest and fees under the Bank Vessel Facility and the RCFs shall be fully and unconditionally released.
As set out in our 5 December 2020 announcement, there are a number of other steps to be taken to complete Transaction, but certain of these steps are simplified as a result of the agreement with the Lenders. In particular, the Scheme that had been considered to manage the Common Collateral claims will no longer be required.
The Collateral Discharge Agreement, and the Transaction generally, will be for the benefit and security of all stakeholders including current and future customers, suppliers, offshore and onshore personnel as well as shareholders and secured financial creditors. As before, those vessels that are on charter, including Floatel Endurance currently at the Martin Linge field can continue to operate as normal. Retaining the Floatel Endurance further enhance the ability to sign and deliver new assignments as well as secure the future of the business.
For further information, please contact:
Peter Jacobsson, CEO, Floatel International AB
Tel: + 46 31 352 07 00; Mob: +46 76 856 36 18
Tomas Hjelmstierna, CFO, Floatel International AB
Tel: + 46 31 352 07 00; Mob: +46 70 261 09 01