Nexus Floating Production holders approve bond restructuring Wednesday

By Susanna Moon

Chicago, Aug. 29 - Nexus Floating Production, Ltd. bondholders approved some proposals to restructure the company's bonds after the company reached an agreement in principle with an informal committee of the holders of its residual bond loans.

The bondholders' meeting was held Aug. 29, according to a company press release.

As reported, the agreement was reached with holders of Nexus Floating Production's $37.96 million residual bond issue number one and $29.07 million residual bond issue number two, according to a previous notice from trustee Norsk Tillitsmann on Aug. 16.

Under the agreement in principle, the company will pay $2.85 million in cash to the trustee on behalf of the bondholders in exchange for the release of the bondholders' claims and the cancellation of the bond loan agreements.

The company and Nexus 2 Private Ltd. will also enter into a profit share deed, under which they will agree to distribute any income, proceeds or other interests received from any commercial arrangements related to a Nexus 2 construction contract on a 50/50 basis between the Nexus Floating Production group and NV Profit Share Ltd., a special purpose vehicle incorporated by the trustee on behalf of the bondholders.

In consideration for the release of the bondholders' claims and the execution of the profit share deed, NV Profit Share will issue preference shares to former bondholders who comply with specified provisions by Oct. 12.

Requesting bondholders will receive one preference share for each of $1,000 due and unpaid bond claims.

According to the notice, the bond loan agreements matured on April 9 after the bondholders did not approve a request to extend the maturity date to May 31.

Nexus, which supplies harsh-environment floating production, storage and offloading vessels, is located in Singapore and has a project office in Arendal, Norway.

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