Olympic Ship extends standstill with secured lenders through Oct. 21

By Susanna Moon

Chicago, Oct. 17 – Olympic Ship AS again extended its standstill agreement with its secured lenders, this time through Oct. 21.

As part of the standstill agreement, “the group will continue to pay interest to the finance providers and the secured lenders have agreed to further postpone all amortization and maturities during the standstill period,” according to the company update.

To find a long-term solution, the company and the secured lenders previously had agreed to extend their standstill agreement to Oct. 14 from Sept. 30.

The company said on Oct. 14 that a consortium of local investors will invest NOK 500 million in the business of the restructured Olympic group of companies, of which about NOK 400 million is new liquidity.

The investment is contingent on the group’s planned restructuring, which requires approval from finance providers, according to a previous company notice.

The consortium includes companies controlled by the main shareholder of the company, Stig Remoy, with the remaining investors having direct or indirect connection to the maritime cluster in Sunnmore, Norway, the release noted.

Current shareholders will be invited to participate in the stock issue on equal terms, the release said.

“I am happy with the fact that we after a comprehensive process have succeeded in establishing a local consortium that believe in Olympic and the fleet of Olympic,” chief executive officer Stig Remoy said in the press release. “It is very positive that the maritime cluster in Sunnmore again proves its ability to find local solutions.”

The investment “is a highly important step toward finding and agreeing a restructuring of the group and its financing structure, which may involve structural changes to the group. However, several other important elements remain and the company will work with its finance providers, the consortium and other stakeholders to reach such a solution, but no guarantee can be given that such agreements can be found in a timely manner,” the release added.

As announced Oct. 3, the company is holding talks with its secured lenders in an aim to adjust the repayment profile of its financial debt.

As part of the standstill agreement, the Olympic Ship group agreed to continue to pay interest to the finance providers, and the secured lenders agreed to postpone all amortization and maturities during the standstill period, as previously announced.

The group’s liquidity remains stable, the company previously said.

Fearnley Securities and Ernst & Young are serving as financial advisers and Wiersholm as legal adviser to assist the company in finding a long-term financing solution for the group.

Olympic is a Fosnavag, Norway-based shipping company.

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