Financial giants looks towards Farstad Shipping – Aftenposten

But none of the three sitting today with an entrance key to Farstad Shipping and a fleet of 58 offshore vessels. It makes Alfred Berg Asset Management, which is one of the two previously unknown players who have bought up enough of a bond issue of 400 million to a negative control in the bond. The second shall Aftenposten DnB Asset Management.

– We saw that there had come a restructuring in offshore, and we began to buy up shares in the loan last fall, confirming the portfolio manager Tom Hestnes Alfred Berg Asset Management.

the Investment Manager does not intend to sit on these bond records, but to sell them to a company that can use the bond to enforce a desired solution. It was so Aker, who first bought up in Solstad Shipping, ensured that Rem Offshore merged with Solstad.

a bond is a debt instrument that imposes the borrower to repay the loan amount plus interest to the bond investor (lender) over a specified period.

borrowers of bonds may be the state, municipalities, counties, financial institutions and government and private companies.

taking up a bond is an alternative source of capital for borrowers to take bank loan or to increase share capital.

It is estimated that the bonds to Norwegian offshore shipping companies account for around 85 percent of the debt.

Although the proportion of the debt is small, the bondholders have great power if the borrower fails to meet the obligations.

A refinancing agreement requires approval of two thirds of bondholders. Sitting man with holdings that make up more than 33.3 percent, the bondholders thereby blocking a proposed solution – and force another.

Three billionaires can upset about on one of the largest industries

can be budkamp between the three

Both Aker, with Røkke at the helm, John Fredriksen through company Deep Sea Supply and Kristian Siem, which controls Siem Offshore, should have signaled interest in the bonds in Farstad.

– we are a financial investor and a lot will be about pure price, but we are equally keen to sell to a long-term industrial player says Tom Hestnes.

But even though players secures negative control of a bond issue, it is still associated with great risk. There are wide speculations around Farstad Shipping and very uncertain what the final result will be. Oil Service Analyst Synnøve Gjønnes Pareto Securities recalls that they buy only negative control in a process they do not know the outcome to.

– The most important for Farstad Shipping today is to ensure long-term refinancing plan with creditors, in combination with new liquidity, she says.

the Norwegian offshore fleet consists of over 630 vessels. That’s about twice as many as in 2000. It consists of regular supply vessels, anchor handling vessels and advanced construction and seismic vessels

In 2013, Norwegian offshore shipping companies 17,000 employees – almost 10,000 more than ten years earlier.

turnover in the Norwegian offshore shipping companies in 2003 was just under 20 billion. Ten years later the total revenue up to 90 billion.

Overall, shipowners in the period from 2003 to 2013 had an operating margin that has varied from between 10 and 27 percent.

in recent months, nearly 100 ships laid up because of missing assignments. At most, there have been around 120 ships laid up.

Source: NSA

billion debt and vessels in lay

Farstad Shipping has a debt of almost 11 billion after an expansive building program they last years. Several ships in circulation and low rates in the offshore market has created a challenging situation for the company. Today’s owners, dominated by the Farstad family in Alesund, has struggled to bring in fresh capital, and in July the company signed an agreement with lenders for deferment of payment until 1 October.

– The fact that the company has not received in place a restructuring, confirms well that it is not possible to achieve a solution with the current owners, says Tom Hestnes.

CEO Karl-Johan Bakken in Farstad not want to go into details about the work progress but said the company is working to put in place a sound financial platform for the future. He stressed that the bondholders will be treated in a proper way, but would not comment on speculation around the company.

– But it is fair to say, is that the market has been, probably will not come back in the same way as before. It would therefore be wise for participants to be creative and open to organize your business in a different way in the future – thus ensuring a sustainable and competitive development, he said.

Offshore companies are merging

Has become a power factor in refinancing

most of the liabilities of Farstad Shipping’s bank loan, but the company has two bond issues totaling 1.4 billion crowns. The e least of these – a loan of 400 million – which is now being used to secure influence in the company.

– If we get a disproportionate power? Both yes and no. One can exploit the situation, but we are keen to get to tidy solutions together with industrial players. Meanwhile, we also have great respect for the values ​​created by offshore shipping companies, says Tom Hestnes.

The oil crisis has led to 25,000 fewer jobs oil crisis could affect the whole world paid up to 30,000 crowns to look at oil platforms