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(Alliance News) - Shares in Gulf Marine Services PLC surged Friday after it signed a formal covenants waiver with its lenders, as well as extended its existing USD25 million working capital facility.
Shares in Gulf Marine were 11% higher at 5.99 pence in London on Friday, still 87% lower over the last year.
Earlier in September, shares in Gulf Marine plummeted after its delayed its interim results amid the ongoing talks with its lenders. The issue primarily related to one lender and the access Gulf Marine had to the working capital facility which it described as providing "essential short-term liquidity."
On Friday, Gulf Marine confirmed it signed a formal waiver from its covenants. In addition, the waiver agreement provided Gulf Marine with a rollover of its existing USD25 million facility as well as access to bonding facilities. Together, this will underpin the liquidity at the firm until the end of 2019.
"This agreement is an important step towards providing a long-term sustainable financing structure for the business as we continue to deliver our strategic repositioning plan", Gulf Marine Executive Chair Tim Summers said.
Gulf Marine said it continued to have a "dialogue" with its lender for a long-term solution to its capital structure. The firm is focused on securing an amendment of its existing debt facilities before the end of 2019.
By Ahren Lester; ahrenlester@alliancenews.com
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