Golden Ocean to call meeting for holders of 3.625% convertibles

By Jennifer Chiou

New York, March 6 - Golden Ocean Group Ltd. said that it intends to call a meeting for holders of its 3.625% limited callable convertible bonds due 2012 to propose the removal of the market adjusted equity ratio in the loan agreement.

In doing so, the company said it will not be in breach of the loan agreement, an event that could have triggered a cross default with remaining existing financing.

As already reported, Hemen Holding Ltd. announced the launch of a conditional offer to purchase two-thirds of Golden Ocean's 3.625% bonds. Bondholders currently own 2,000 bonds, each with a face value of $100,000.

If Hemen is successful in acquiring a two-thirds position, the company plans to call the bondholders' meeting.

In view of its tight cash situation, Golden Ocean said it is dependent on coming to a conclusion to these discussions within the next few weeks, adding that the objective for the restructuring is to create a robust business model for Golden Ocean where reduced commitments, combined with its modern fleet and good time charter coverage, give downside protection to meet a potential continued difficult freight market.

Golden Ocean is a Hamilton, Bermuda-based dry bulk shipping firm.

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