During the fourth quarter, the Company successfully completed material aspects of its restructuring (the “Restructuring”) as disclosed in the third quarter interim financial report and amongst others the stock exchange notices of October 18, 2011 and November 30, 2011 which are available on the Company’s website (www.sevanmarine.com).
The Restructuring resulted in the disposal of substantial assets and operations of the Company to affiliates of the Teekay Corporation (“Teekay”). As of September 30, 2011 these operations were reclassified as discontinued operations in accordance with International Financial Reporting Standards (“IFRS”) with the current and historical financial statements being restated accordingly.
In accordance with IFRS, the gains from the debt remissions completed in the fourth quarter are accounted for at the time of the formal release of the obligations by the bondholders. Gains from the debt remission and debt to equity conversion arising out of the Restructuring during the fourth quarter are approximately USD 255 million. The net equity as of December 31, 2011 is USD 123.3 million due to the positive impacts of the debt remissions and capital increases carried out during the fourth quarter.
Following completion of the Restructuring and transactions with Teekay, Sevan Marine has been released from all obligations under the FPSO Sevan Hummingbird, FPSO Sevan Piranema, the Unsecured and the Bridge Loan bonds. Norsk Tillitsmann, on behalf of the bondholders in the Sevan Voyageur Bond, has released all security under the Sevan Voyageur Bond in exchange for an irrevocable, unconditional and absolute payment guarantee from Teekay.
E.ON together with the USD 230 million bank facility syndicate led by ING entered into standstill agreements where under they agreed, subject to certain terms and conditions, not to exercise any acceleration rights or other remedies available to them under the relevant agreements for the period up until February 17, 2012 or until the aforementioned amendments are executed. This standstill period has now expired. The Company expects a further standstill to be executed in the coming days and execution of the amendments to the E.ON agreements and USD 230 million bank facility to be completed in the coming weeks.
Approval of the Restructuring has reduced the Company’s debt burden, increased its capital base and led to a substantial dilution of existing shareholders in the Company. The completion of the sale of the FPSO Sevan Voyageur, currently expected to occur in the second half of 2012, is the final step in the Restructuring as announced.
Sevan Marine has retained its core intellectual property rights and engineering core competence, which it intends to leverage by seeking additional license agreements and projects that utilise Sevan Marine’s unique cylindrical hull concept. This will be supported by a strong industrial partner and shareholder in the form of Teekay. The Board believes that the completion of the Restructuring represents a positive outcome for all parties including creditors, customers, staff and shareholders.
Read more in the attached report
Carl Lieungh (CEO) and Kjetil Vangsnes (CFO) will today at 1:00 p.m. (CET) give a presentation of the results at Shippingklubben, Haakon VII`s gate 1, Oslo.
The presentation will be in English.
The presentation will also be broadcasted LIVE on www.sevanmarine.com.
It is recommended that you log on to the webcast 5 minutes in advance of the presentation.
If you wish to attend the presentation in Oslo, please confirm by email:
If you wish to call-in to listen to the presentation, please find the call-in details attached.
Dial in details
The information in this announcement is subject to the disclosure requirements of the Norwegian Securities Trading Act section 5-12 and/or the Oslo Børs - Continuing Obligations.
Sevan Marine ASA is specializing in owning, operating and licensing FPSOs, based on its patented cylindrical floater technology. Sevan Marine ASA is listed on Oslo Børs with ticker SEVAN. For more information, please refer to www.sevanmarine.com.
For more information please contact:
Marit Ytreeide, Press Contact (Media)
+47 901 28 308 mobile
Carl Lieungh, CEO, Sevan Marine ASA (Media)
+47 374 04 000 office
Kjetil Vangsnes, CFO, Sevan Marine ASA (Analysts)
+47 374 04 000 office