SeaMetric: Postponement of interest payment

SeaMetric International AS (“SeaMetric”) has made good progress towards establishing a new project for the construction of a complete Twin Marine Lifter System. To be able to conclude these processes, including entering into a new construction contract and preparing for a full refinancing, SeaMetric has requested its bondholders to accept a postponement of the interest payment due in November 2009. The request has already been approved by bondholders representing more than 2/3 of the outstanding loan. As compensation, the bondholders will receive 10% ownership in SeaMetric through the issuance of new shares.

SeaMetric has developed the Twin Marine Lifter (TML) System for installation and removal of very heavy objects in the offshore oil and gas industry such as platform topsides and jackets with weights of more than 30,000 tonnes. Such marine heavy lifting capacity is not available in world markets. SeaMetric’s long term goal is to own and operate the TML System in different locations world-wide.

SeaMetric has made good progress towards establishing a new project for the construction of a complete TML System, consisting of two larger vessels plus lifting arms. The vessels have an improved design, measure 180 by 42 metres and feature 100 beds. SeaMetric currently undertakes a bid process towards competent and experienced yards in Asia. There is strong interest for the construction project from well reputed yards. The bid deadline is in the end of November 2009.

SeaMetric has asked each yard to present proposals for financing during the construction period and for a long term period after delivery, based on SeaMetric’s willingness to make a substantial upfront payment to the yard. Different debt financing scenarios are being evaluated. To be able to make such upfront payment, SeaMetric will have to issue new equity. The equity case will rest on the combination of the favourable commercial prospects for the TML System, a quality yard giving a credible delivery date, and debt financing commitments in place for the remaining part of the project costs. An equity issue is likely to take place in Q1 2010.

As reported in the Q3 2009 report issued on 15 October 2009, SeaMetric’s remaining liquidity is approaching low levels. In view of the liquidity situation and responsibilities also towards other creditors, SeaMetric now seeks to postpone the next interest payment due to its bondholders. It is SeaMetric’s firm view that the best way to preserve the value of the company’s assets is to ensure a going concern solution, whereby SeaMetric is given sufficient time to be able to complete the processes described above. SeaMetric has therefore requested the bondholders to accept a postponement for a period of three months, until 25 February 2010, of the interest payment due on 25 November 2009. 

As compensation for such postponed interest payment, SeaMetric has offered the bondholders a postponement fee of NOK 923,741 (approximately USD 165,000), which will be converted to 923,741 new SeaMetric shares. Such conversion will collectively give the bondholders 10% ownership in SeaMetric. The Board is authorized by SeaMetric’s general meeting to issue such number of new shares.
    
SeaMetric has discussed the processes described above with major bondholders. The interest payment postponement request has already been approved by bondholders representing more than 2/3 of the outstanding loan.

For further information please contact:
Johan F. Andresen, CEO, +47 51 20 16 22 or johan.andresen@seametric.com
Georg Eliassen, CFO, +47 51 20 16 38 or georg.eliassen@seametric.com

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