Rig Firm Fred. Olsen Energy Fails To Win Waiver Extension



Rig Firm Fred. Olsen Energy Fails To Win Waiver Extension
The creditors of Oslo-listed Fred. Olsen Energy did not agree to extend a waiver to some of the company's financial covenants that expired on Saturday, the Norwegian drilling rig contractor says.

Reuters

OSLO, July 2 (Reuters) - The creditors of Oslo-listed Fred. Olsen Energy did not agree to extend a waiver to some of the company's financial covenants that expired on Saturday, the Norwegian drilling rig contractor said.

The company had previously warned that it may require new equity and potential impairment of its bank and bond loans to achieve a long-term solution of its financial situation.

The company had $759 million outstanding under the bank loan, and a bond loan worth 1 billion crowns ($122.30 million) maturing in Feb. 2019 at the end of 2017.

During the first quarter, the company paid a scheduled repayment of about $95.5 million under the bank facility, and received a waiver, which expired on June 30.

Its financial covenants will be tested on July 20.

Fred. Olsen Energy said it would continue operations as normal while continuing talks with stakeholders, creditors and their advisors to find solutions to improve its financial situation.

The company has seven drilling rigs, of which one was employed under the contract with BP.

($1 = 8.1769 Norwegian crowns) (Reporting by Nerijus Adomaitis, editing by Gwladys Fouche)



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