Update on lender dialogue in Viking Supply Ships A/S

Press release
As previously communicated, Viking Supply Ships A/S (VSS) has for some time been
engaged in a dialogue with its creditors with a view to agreeing on a financial
restructuring of the company. As part of this process, VSS has made repeated
attempts to engage in a dialogue with the bondholders in the bond issue "Viking
Supply Ships A/S 2012-17 FRN". The process towards the banks has been very
constructive and a framework for a solution is agreed in all material respects
subject to agreement with the bondholders. The discussions with the bondholders,
however, have been quite challenging.

There has been contact between VSS and a committee of three core bondholders.
VSS has on several occasions offered a solution which has involved a deferral of
the maturity of the bonds, as demanded by the secured creditors, and part of the
interest payments being made in-kind as a part of a global solution for the
restructuring of the Group balance sheet. Since the recovery of the unsecured
creditors in the event of a bankruptcy is likely to be extremely limited, or in
effect zero, VSS believes this proposal, which does not involve any reduction of
any part of the bondholders' claim, to be a fair and attractive offer. This
offer has, however, on several occasions been flatly rejected by the above
-mentioned committee of bondholders.

They have expressed that the only solution they are willing to discuss is one
where the bonds are redeemed in cash, albeit at a somewhat discounted price. The
amount of new equity raised, as demanded by the secured creditors, will allow
for necessary working capital and early repayment of secured loans in exchange
for eased amortization over the next four years. If the bondholders do not move
from this position, it will not be possible to arrive at a restructuring which
will allow VSS to survive as a going concern.

VSS would therefore strongly encourage the bondholders to engage in a
constructive dialogue on realistic premises to seek to find a solution which
will allow a financial restructuring of VSS. VSS is willing to explore various
alternatives, including a conversion of bonds into shares in Viking Supply Ships
AB, listed on NASDAQ OMX Stockholm segment Small Cap, at present market values,
respectively 36% of par value and SEK 1.70 per share, but is not in a position
to offer redemption for cash. However, shares received can be freely sold by the
recipients. Should a solution not be reached the only realistic outcome is
bankruptcy of VSS.

VSS will shortly summon to a bondholder meeting to provide an updated status of
the company, as well as present a restructuring proposal to the holders of the
bond. To secure your interests, we strongly urge you to participate and engage
in the process.

For further information please contact:

Christian W. Berg, CEO, ph. +45 41 77 83 80, e-mail
christian.berg@vikingsupply.com

Morten G. Aggvin, IR & Treasury Director, ph. +47 41 04 71 25, e-mail
ir@vikingsupply.com

Viking Supply Ships AB (publ) is a Swedish company with headquarter in
Gothenburg, Sweden. Viking Supply Ships A/S is a subsidiary of Viking Supply
Ships AB (publ). In addition Viking Supply Ships AB (publ) has the subsidiary
TransAtlantic AB. The operations are focused on offshore and icebreaking
primarily in Arctic and subarctic areas as well as on Shipping services mainly
between the Baltic Sea and the Continent. The company has in total about 500
employees and the turnover in 2015 was MSEK 1,977. The company’s B-shares are
listed on the NASDAQ Stockholm, Small Cap segment. For further information,
please visit: www.vikingsupply.com

This information is information that Viking Supply Ships AB is obliged to make
public pursuant to the EU Market Abuse Regulation. The information was submitted
for publication, through the agency of the contact person set out above, at
17:30 CET on 3 July 2016.