SFL - Update on Seadrill Limited restructuring
(Thomson Reuters ONE) -
Ship Finance International Limited (NYSE: SFL) ("Ship Finance" or the "Company")
today announces that Seadrill Limited ("Seadrill") has filed a Form 6-K with the
Securities and Exchange Commission detailing the status of negotiations with its
secured lending banks, unsecured bondholders, and potential new money investors.
In the filing, Seadrill states that its target is reaching an agreement on a
consensual, comprehensive restructuring plan by the end of April, with the
implementation of such plan to occur during the second quarter of 2017. In its
Form 6-K filing, Seadrill makes reference to certain discussions with its
stakeholders, including Ship Finance, outlining an initial proposal made by
Seadrill in October 2016 with respect to charter obligations for three drilling
rigs owned by Ship Finance that are on long term charters with fully guaranteed
subsidiaries of Seadrill.
Ship Finance has not agreed to the terms proposed by Seadrill in October 2016
and summarized in today's filing by Seadrill. In November, the Company proposed
a more balanced long-term structure through which Seadrill could meet its
commitments. No further discussions have been held between Ship Finance and
Seadrill pertaining to this matter, and no agreement has been reached. In the
meantime, Seadrill continues to perform on its charter payment obligations.
Ship Finance structured the debt obligations and charters relating to these rigs
to position the Company for a potential market downturn. The aggregate loan
amount related to the rigs is now approximately $875 million, down from nearly
$1.9 billion when the rigs were acquired. Of the amount outstanding, only $240
million, or 27%, is guaranteed by Ship Finance; our balance sheet is insulated
from the remaining debt.
We believe it will be in all stakeholders' interest to have a financially
stronger counterparty, and we intend to have a constructive dialogue with
Seadrill to find a sustainable path going forward. This will also in due course
include discussions with the banks financing the three rigs in order to find a
balanced solution.
The Company will update the market when there are new material developments.
The Board of Directors
Ship Finance International Limited
Hamilton, Bermuda
Questions can be directed to Ship Finance Management AS:
Ole B. Hjertaker, Chief Executive Officer: +47 23114011
Harald Gurvin, Chief Financial Officer: +47 23114009
About Ship Finance
Ship Finance International Limited (NYSE: SFL) has an unprecedented track record
in the maritime industry, being consistently profitable and paying dividends
every quarter since 2004. The Company's fleet of more than 70 vessels is split
between tankers, bulkers, container vessels and offshore assets, and Ship
Finance's long term distribution capacity is supported by a portfolio of long
term charters and significant growth in the asset base over time. More
information can be found on the Company's website: www.shipfinance.bm
Cautionary Statement Regarding Forward Looking Statements
This press release may contain forward looking statements. These statements are
based upon various assumptions, many of which are based, in turn, upon further
assumptions, including Ship Finance management's examination of historical
operating trends. Although Ship Finance believes that these assumptions were
reasonable when made, because assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict and
are beyond its control, Ship Finance cannot give assurance that it will achieve
or accomplish these expectations, beliefs or intentions. Important factors that,
in the Company's view, could cause actual results to differ materially from
those discussed in this presentation include the strength of world economies and
currencies, general market conditions including fluctuations in charter hire
rates and vessel values, changes in demand in the tanker market as a result of
changes in OPEC's petroleum production levels and worldwide oil consumption and
storage, changes in the Company's operating expenses including bunker prices,
dry-docking and insurance costs, changes in governmental rules and regulations
or actions taken by regulatory authorities, potential liability from pending or
future litigation, general domestic and international political conditions,
potential disruption of shipping routes due to accidents or political events,
and other important factors described from time to time in the reports filed by
the Company with the United States Securities and Exchange Commission.
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Ship Finance International Limited via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 31.01.2017 - 15:17 Uhr
Sprache: Deutsch
News-ID 521006
Anzahl Zeichen: 5656
contact information:
Town:
Hamilton
Kategorie:
Business News
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"SFL - Update on Seadrill Limited restructuring"
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Ship Finance International Limited (Nachricht senden)
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