Stolt Offshore obtains extension on covenant waivers

By Carlise Newman

Chicago, Oct. 15 - Stolt Offshore SA obtained an extension of a covenant waiver to Nov. 26 from its principal lenders.

In September Stolt entered into restructuring discussions with its lenders.

Stolt Offshore had obtained waivers through Oct. 15 on its primary credit facilities in order to give it time to engage in further discussions with its lending syndicate and for the lenders to review the blueprint for its proposed restructuring.

Stolt's liquidity consists of a $330 million in a five-year revolver, which was reduced from $385 million on Aug. 31, and a $100 million four-year revolver, which will be reduced by $10 million on Jan. 1, 2004, and will be reduced by $10 million at six monthly intervals until the termination date.

While the process of restructuring provides a period of uncertainty, the company said it believes it has cash and liquid resources sufficient to fund ongoing operations through the anticipated completion of the bank negotiations.

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