Jasper Explorer does not get consent to extend interest payment date

By Angela McDaniels

Tacoma, Wash., Aug. 25 – Jasper Explorer plc left the terms of its 13˝% senior secured bonds due 2016 unchanged after the company’s consent solicitation failed.

As previously reported, the company asked bondholders to waive the requirement to retain a minimum of $10 million of available free cash and to extend the next interest payment date to March 27, 2015 from Nov. 27.

At a bondholder meeting at 7 a.m. ET on Aug. 19 in Oslo, there were not enough bondholders present to form a quorum, no valid resolution was made, and the proposed resolution obtained zero percent of the votes, according to a notice from bond trustee Nordic Trustee ASA.

At least half of the bonds had to be represented at the meeting in order to form a quorum, and the holders of at least two-thirds of the bonds represented at the meeting had to vote in favor of the resolution in order for it to pass.

On Aug. 4, the company said that it has not registered any revenue since its drillship came off hire at the end of February, that it used a major portion of its unrestricted cash to make the interest payment due on the bond in May and that it needs to use its currently restricted cash to cover ongoing operational costs and general and administrative expenses.

Jasper Explorer is a wholly owned subsidiary of Jasper Offshore (Cyprus) Ltd., which is part of Singapore-based Jasper Investments Ltd., a holding company that principally invests in offshore oil and gas drilling.

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