The Company continues to engage in constructive discussions with its key stakeholders on terms for a financial restructuring. The vessels, which are on charter continue to operate as normal and it is business as usual for the Group’s operations. The Forbearance Agreement with the ad hoc committee of holders of the 1L Bonds (the “AHC”) has been extended to 15 August 2020. The Payment Agreement with the Bank Lenders where certain expenses in respect of Floatel Endurance and bank collateral companies are covered by proceeds in the blocked accounts is operational and the Lenders have confirmed in writing that they remain supportive of the Group and do not intend to take any further action at this time.
On 31 May 2020 the Company announced that it would conduct an independent review of the Company business plan which would include a review of the assumptions made in assessing the valuation-in-use of our vessels. The review has now been completed and the Company has determined in light of the independent review, the Coronavirus pandemic which has caused unprecedented impact on the global economy and the oil price development and its impact on oil and gas companies capital expenditure and maintenance spending to update its business plan, the long-term market outlook and the sustainable steady state profitability of the Group’s vessels.
The Company has a consequence of the above performed new impairment assessments of its vessels in accordance with IFRS, which result in aggregate impairment charges of approximately USD 398 million. This will be reported in the Q2-2020 interim report, which is planned to be published 25 August 2020. Book value of vessels after the impairments will approximately be USD 779 million (USD 1 189 million in Q1-2020).
See attached press release for full details.
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