(Updates with company statement in second paragraph.)
Sept. 29 (Bloomberg) -- Sevan Marine ASA, the Norwegian maker of floating oil-production and storage vessels, has approved a long-term solution presented to the company to stave off bankruptcy.
The solution will include sustainable collaboration with a “large industrial partner,” the company said in the statement. “The board believes it has found a good solution for all parties. The company will publish further information once the agreement has been approved by all parties.”
The company requested the Oslo Stock Exchange extend a suspension of its shares as it meets with stakeholders for a negotiated settlement that may include a complete restructuring of bond loans, the company said earlier today in a statement.
“There have been tense moments over the last 24 hours,” Chairman Jens Ulltveit-Moe said by phone on his way to today’s board meeting. “It could be very helpful for the company to have a long-term industrial owner as opposed to straight financial ones.”
The company has struggled with larger-than-expected maintenance costs on its Sevan Voyageur production and storage vessel, which are expected to reach $190 million, compared with an earlier $135 million forecast.
The company reached an agreement with bondholders in July to defer interest payments until the end of September as it negotiates a debt restructuring.
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