Oceanteam seeks to extend bonds, cut coupon to avoid bankruptcy

New York, Nov. 28 – Oceanteam Shipping ASA said it is seeking to extend the maturity of its senior callable bonds due 2017 and to reduce the coupon in an effort to stay out of bankruptcy.

Holders are being asked to agree to push back the due date by five years to Oct. 24, 2022, to reduce the interest rate to 1% a year, payable in cash or kind at the issuer’s option, and to make other changes, according to a notice.

The company described the proposed amendments as “the best alternative currently available...to avoid filing for bankruptcy.”

If bondholders do not approve the restructuring, there is “a distinct risk” the company will file for liquidation.

The proposed changes follow a period of negotiations, Oceanteam said.

A meeting to approve the amendments will be held at 7 a.m. ET on Dec. 12 in Oslo.

At least half the bonds must be represented at the meeting and two-thirds of the bonds must be voted in favor.

Bond trustee Nordic Trustee ASA will refuse to implement two of the proposed changes, requiring bondholders to cover all costs and expenses that they incur and those incurred by the trustee, the company said.

Oceanteam previously said it was in default on the bonds because it did not make the interest payment due on Oct. 24.

Oceanteam consists of two operating segments, Oceanteam Shipping and Oceanteam Solutions. Oceanteam Shipping owns, charters and manages deep-water offshore support vessels and fast support vessels. Oceanteam Solutions provides offshore solutions. The company is based in Bergen, Norway.

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