Sea Truck misses December payment; bondholders to vote on standstill

By Caroline Salls

Pittsburgh, Jan. 3 – The holders of Sea Trucks Group Ltd.’s 9% senior secured callable bond issue 2013/2018 will meet Jan. 18 to vote on entry into a proposed standstill agreement, according to a notice released by bond trustee Nordic Trustee ASA.

The trustee said Sea Trucks is in default of the bond agreement in connection with its failure to transfer funds into debt service retention account for October and November, the lay-up of vessels being completed without the written consent of the bond trustee and vessel transfer arrangements between Sea Trucks and West African Ventures Ltd. related to vessel transfers that took place in May 2016.

In addition, the company has notified the bondholders that it did not expect to make the interest payment due in December.

Conditions to effectiveness of the standstill agreement include the transfer of $500,000 into the debt service retention account, plus further amounts to the extent the group’s cash flow allows based on a budget and formula agreed between Sea Trucks and the trustee.

In addition, all funds currently standing in a Sea Trucks account with BSI bank in Switzerland must be transferred into a dollar earnings account that is currently operated by its West African Ventures (C.I.) Ltd. subsidiary and held with Rabobank.

Sea Trucks Group is an oil and gas marine contractor based in Lagos, Nigeria.

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