Stolt-Nielsen gets further reprieve to repay debts

Stolt-Nielsen gets further reprieve to repay debts

   Stolt-Nielsen S.A., the London-based tanker shipping and offshore energy company, has obtained more time from its creditors to repay overdue debts.

   Nasdaq-listed, money-losing Stolt-Nielsen said that its primary lenders agreed to extend the “waivers of covenant defaults” until May 21, 2004. Stolt-Nielsen also reported that it will pay down its $160 million revolving credit facility by $20 million on Feb. 29, that it has received an extension on repayment of the remaining $140 million until May 21.

   The financial waivers call for improvements in the company’s liquidity during the waiver period through dispositions or capital-raising initiatives, and oblige Stolt-Nielsen to work with its lenders to provide available collateral to unsecured or under-secured lenders during the waiver period.

   Stolt-Nielsen plans to develop a financial restructuring plan with its lenders by March 31.

   “I believe these extended waivers provide us with sufficient time to develop and commence the implementation of a comprehensive financial restructuring plan for the company, which has suffered heavy losses on several West Africa construction projects in its 63.5-percent owned subsidiary Stolt Offshore S.A.,” said Niels G. Stolt-Nielsen, chief executive officer of Stolt-Nielsen.