Hermitage Offshore Services agreed to a 10-day extension of its previously announced forbearance agreement to its $132.9 million term loan facility with DNB Bank and Skandinaviska Enskilda Banken. DNB Bank is serving as agent and security agent.

While the extension of the forbearance agreement does not address the long-term liquidity and restructuring needs of Hermitage Offshore Services, pursuant to the terms of the extended forbearance agreement, the lenders agreed to forbear from exercising any of their rights and remedies under the term loan facility and any other finance agreements related to the term loan facility in the event of a default by the company until Aug. 10, 2020.

The outbreak of the novel coronavirus coupled with the collapse in the price of crude oil resulted in a deterioration of the financial condition of Hermitage Offshore Services. These events have given rise to substantial doubt about the company’s ability to continue as a going concern. The company engaged Perella Weinberg Partners and Snapdragon Advisory as financial advisors and Proskauer Rose as legal counsel to analyze restructuring alternatives and has been in ongoing discussions with the lenders in an effort to address these issues.

Hermitage Offshore Services is an offshore support vessel company that owns 23 vessels consisting of 10 platform supply vessels, or PSVs, two anchor handling tug supply vessels, or AHTS vessels, and 11 crew boats. The company’s vessels primarily operate in the North Sea and the west coast of Africa.