Sembcorp Marine's wholly-owned subsidiary, PPL Shipyard (PPLS), has reached an in-principle agreement with Borr Drilling Limited to defer PPLS’ receivables from Borr Drilling from 2023 to 2025.
The balance amount of US$800 million was scheduled to mature on May 1, 2023, and a majority of the interest payable was capitalised and also due in 1Q2023. The company has, at Borr Drilling’s request, agreed in-principle to defer the maturity date by 24 months to May 1, 2025.
Borr Drilling has also agreed to pay PPLS an extension fee, and also make earlier payments of part of the capitalised interest previously due in 1Q2023. The remaining capitalised interest will be repaid in quarterly instalments in 2023 and 2024. Interest will continue to accrue at market rates acceptable to PPLS, says Sembcorp Marine on Dec 28.