Prosafe refers to the information on its financial status and process with lenders that was provided in the Q4 2019 report published on 6 February 2020, as well as previous update on lender discussions provided on 14 January 2020 and 13 February 2020.
The previously reported temporary payment deferrals and waivers of certain identified defaults under the company’s USD 1,300 million and USD 288 million facilities have now expired. However, the company’s discussions with its lenders remain constructive and the efforts to create and agree a long-term solution and runway continue. Pending conclusions of these discussions, Prosafe has today agreed a forbearance from the non-payments and defaults from a majority of its lenders across its two loan facilities. The forbearance has initially been granted for a period until 15 April 2020, but can be extended by the lenders by a by simplified process.
As part of this, the company will continue to defer making payments of scheduled instalments and interests under both facilities. Similarly, payment of the final instalment owed and due under the seller credit to Cosco for the Safe Notos, remains as reported on 13 February subject to ongoing discussions with Cosco and the lenders.
The forbearance shows support for the company to continue to operate, while lenders reserve their rights, and secures stability for the company while it continues to work with the lenders to agree on a long term financial solution. Pending this, the company continues to operate on a business as usual basis to protect and create value through challenging market conditions.
Further information will be provided in due course.
