Hilleren holders vote to give three-month waiver for two bond issues

By Susanna Moon

Chicago, Sept. 12 – Hilleren Tomteselskap AS obtained holder approval for a temporary waiver for its 12% senior secured callable bond issue 2016/2017 and 20% junior secured callable bond issue 2016/2017.

As announced Aug. 27, the holders were being asked to accelerate the issues under two proposals considered at a meeting held Sept. 11 in Oslo.

At the meeting, there were enough holders to form a quorum for each series, and the second proposal was approved by holders of 96.03% of the 12% issue and by holders of 99.24% of the 20% issue, according to a notice by bond trustee Nordic Trustee AS.

After the acceleration, the bonds would have been 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.

Under the second proposal, the issuer would be granted a waiver of the payment default until Dec. 1, which could be withdrawn at any time by the trustee by giving notice to the issuer, and the bondholders committee will oversee the following process during the waiver period: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

To form a quorum, at least half of the bonds had to be represented at the meeting. To pass, holders of at least two-thirds of the bonds represented at the meeting needed to 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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