Hilleren holders to consider acceleration, waiver of two bond issues

By Susanna Moon

Chicago, Aug. 27 – Hilleren Tomteselskap AS holders are being asked to accelerate the issuer’s 12% senior secured callable bond issue 2016/2017 and 20% junior secured callable bond issue 2016/2017 as part of two proposals to be considered at a meeting on Sept. 11 in Oslo.

After the acceleration, the bonds would be repaid by enforcing the bond trustee’s security interest over all material assets, including the first priority land mortgage, escrow account pledge, the share pledge and starting the sales process of the land mortgage, according to a notice released Tuesday by bond trustee Nordic Trustee AS.

Under the second proposal, the issuer would be granted a waiver of the payment default until Dec. 1, which could be withdrawn at any time by the trustee by giving notice to the issuer, and the bondholders committee will oversee the following process during the waiver period:

• Assessment of alternative value enhancing actions;

• Explore bondholder alternatives; and

• Negotiate with the issuer regarding a potential conversion of the bond and acquire all relevant information.

Holders interested in being part of the committee may e-mail slagsvold@nordictrustee.com.

To form a quorum, at least half of the bonds must be represented at the meeting. To pass, holders of at least two-thirds of the bonds represented at the meeting must vote in favor of the measure.

As reported on March 27, the company obtained an extension to June 20 of the maturity date of the two bond issues.

In addition, the bondholders voted to postpone all interest payments until the new maturity date without penalty.

The company also received waivers, access to NOK 1.52 million in restricted cash and bondholder approval to assume a maximum of NOK 3 million in new debt that would rank ahead of the bond issues in priority.

As previously reported, Hilleren has spent all proceeds from the bond issues and is unable to repay the bonds at maturity.

The trustee previously said the actions are designed to allow the company to continue its operations.

Hilleren Tomteselskap is a Bergen, Norway, development and real estate company.

© 2015 Prospect News.
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