Offshore carrier Dof, dependent on the goodwill of its creditors, has obtained temporary deferral of loan installments and interest payments, enabling the company to continue negotiations with its creditors on a debt restructuring.

The deferral agreement covers 91 percent of the secured debt in Dof and subsidiary Dof Rederi, and 88 percent of the secured debt in Dof Subsea.

The deferral, which is a continuation of a previous agreement, is much needed for Dof, which is burdened by debt and low earnings due to a weak market and the effects of the Covid-19 pandemic.

"The challenging markets have continued into 2021 and the global Covid-19 situation has further continued to impose challenges to the operations of the Group," writes Dof's management in the company's quarterly report for the first three months of 2021.

The utilization of Dof's fleet was 67 percent in the first quarter against 81 percent in the first quarter last year, and the group estimates the value of its orderbook to NOK 14.2 billion (USD 1.7 million).

Dof comprises a fleet of 60 offshore vessels for servicing oil infrastructure above and below the water.

English Edit: L. N. Barnes

Dof remains dependent on forbearance from creditors 

Subsea 7 reports billion-dollar deficit after fresh impairments

Dof exits 2020 in massive deficit – rates too low to handle debt

Bourbon escapes major debt and gains fresh capital