World News: 11:05 GMT Tuesday 14th January 2020. [Prosafe SE via Globe Newswire via SPi World News]
On 5 November 2019, Prosafe informed that it had re-evaluated its outlook and revised its forecasts resulting in a USD 341 million write down of assets and consequently a marginalized book equity.
Prosafe further informed that although the company had sufficient liquidity until early 2021, it would in light of the market outlook commence discussions with its lenders with a view to ensure sufficient financial flexibility for the longer term.
The discussions with its lenders are ongoing and constructive. Pending conclusions, Prosafe has received consent to defer payments under the USD 288 million facility from 15 January until 13 February 2020. Other identified defaults in the period have also been temporarily waived under both the USD 1,300 million and USD 288 million facilities. Both measures have been agreed in order temporarily to align the timing of scheduled payments under both facilities and to create stability while a long-term solution and runway is being sought.
As part of this, the company's final payment of approx. USD 18.5 million owed and due under the sellers credit to Cosco for the Safe Notos has not been made. This payment is subject to certain contractual subordination and coordination arrangements with the financial lenders, and discussions with Cosco on this payment is ongoing.
As at the current time, the process with the creditors remains constructive and although there can be no assurances with respect to the outcome of the ongoing discussions, Prosafe remains hopeful that it will be able to agree a long-term solution in the near term. 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. Prosafe is a leading owner and operator of semi-submersible accommodation vessels. The company is listed on the Oslo Stock Exchange with ticker code PRS. For more information, please refer to Stavanger, 14 January 2020 Prosafe SE For further information, please contact: Jesper K. Andresen, CEO Phone: +47 51 65 24 30 / +47 907 65 155 Stig Harry Christiansen, Deputy CEO and CFO Phone: +47 51 64 25 17 / +47 478 07 813 This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
Globe Newswire: 11:05 GMT Tuesday 14th January 2020
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