Viking Supply Ships agreement with banks results in default on bonds

By Caroline Salls

Pittsburgh, June 24 – Viking Supply Ships AB finalized an in-principle agreement with banks regarding a revised long-term financial platform, but the terms of that deal resulted in the receipt of a notice of default from bond trustee Nordic Trustee ASA, according to a news release.

Viking said the agreement remains subject to final credit committee approval. The company will continue negotiations with its investors and remaining financial creditors in an effort to reach a final agreement with them as well.

In accordance with the agreements with the banks, the company said it will not fully pay interest, amortizations or other commitments to its financial creditors or under its Odin Viking bareboat charter contract, other than where an agreement for a long term financial platform has been reached.

“The company has for some time been engaged in a dialogue with a few core bondholders and their adviser,” the release said. “The company would like to invite all bondholders to engage in such dialogue to reach an agreement.”

If an acceptable solution is not reached with all relevant financial creditors, Viking Supply Ships said it will consider all structural and strategic alternatives to address its financial platform.

Based in Gothenburg, Sweden, Viking is an offshore and icebreaking company in the Arctic and subarctic areas, as well as a provider of shipping services between the Baltic Sea and the continent.

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