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Fred, the company of crippled platforms. Olsen Energy (FOE) will present Tuesday a new proposal for refinancing the company including the following:
- The sale of the drilling vessel Bolette Dolphin, which has often been referred to as the crown jewel of the company.
- Recovering new equity of 130 to 140 million dollars, which corresponds to 1.2 billion euros.
- Issue of new loan capital of approximately $ 90 million.
- Settlement of all outstanding secured debts for a payment of approximately $ 580 million and certain minor payments.
- Settlement of all outstanding debt by conversion into equity. After refinancing, this represents approximately 10% of FOE's share capital (approximately $ 15 million).
It is specified that the existing shares of the company will represent approximately 1% of the share capital after the restructuring.
After this refinancing, FOE will continue as a rig rigging company with four semi-submersible rigs (Blackford Dolphin, Bideford Dolphin, Borgland Dolphin and Byford Dolphin).
– FOE will continue discussions with key stakeholders to ensure the necessary support for implementation. She noted that the proposal could be modified as a result of such discussions, says the message.
The title is down 30% to 1.49 crowns on Oslo Børs.
Read also: Hedge fund with Shortkule on Fred. Olsen Energy
Debt problem
The assembly company violated the loan terms of the FOE05 bond loan after the temporary relief it had until June 30 of this year was not extended.
In order to maintain its liquidity, the company has therefore ceased to fulfill the obligations of its financial creditors.
– Constructive discussions continue with the financial sellers during the presentation of the second quarter figures.
The company then stated that, in its view, a long-term solution would involve the recovery of new shares, as well as certain changes in bank facilities and the bond issue, including debt write-downs.
In the first quarter report, the editing company said it hired a financial advisor to help find a solution.
After the experience of Hegnar.no, it is ABG Sundal Collier who assists Fred. Olsen Energy in this process.
Evercore has been hired as a bank advisor, while AMA Capital Partners is helping bondholders, according to sources mentioned by Hegnar.no.
Precious class
The third quarter report, presented two weeks ago, announced the sale of assets and that the semi-submersible Bredford Dolphin rig, as well as the boring Belford Dolphin, would be sold for scraping purposes. .
The latter drillship was shipped from Samsung Heavy Industries to South Korea in 2000, representing about $ 130 million, or about $ 1.1 billion by 2015.
Since then, he is unemployed off the coast of Malaysia and will now end his days.
Read also: Platform strengthened for billions in 2015 – now it is scrapped
Tried to get a contract
Finance Director Hjalmar Krogseth Moe in Fred. Olsen Energy told Hegnar.no in July that the drill ship "Bolette Dolphin", which according to the new proposal was being sold, had been invited to participate in several tender calls.
"We participate in specific offers in West Africa, South and Central America, the Mediterranean and India," he said.
Asked if some actors had shown interest in buying the 2013 drill, and if sales were relevant, the CFO was still silent.
"We have no other comments regarding the drill ship," he said.
Read also: Saved with distress
As ordered
In mid-October came Danske Bank with an update on Fred's course. Olsen Energy was reduced to one penny over the previous five years, while the sales recommendation was repeated.
The sale of Bolette Dolphin, which analyst Steffen Evjen calls "one of the best in its category", has been touted as a key.
"That's the good thing, but it's in the wrong place at the wrong time and is not competitive in the current consolidation climate." We think that a sale can yield $ 300 million, which can be used to pay a secured debt – a first step to help Fred. Olsen Energy to survive, he writes in the update.
"We believe that the maintenance of the drill ship can be useful, with an annual down payment of $ 40 million, while the world is looking good and jobless. with the North Sea Fleet, where she still has the opportunity to get out of the shells, he added.
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