Sea Trucks gets unanimous support for standstill on 9% bonds due 2018

By Susanna Moon

Chicago, Jan. 18 – Nigeria’s Sea Trucks Group Ltd. secured the needed votes to amend its $456 million of outstanding $575 million senior secured bond issue 2013/2018.

There were enough holders to form a quorum, and the measure passed unanimously, according to a notice by Nordic Trustee ASA.

Sea Trucks had decided to skip the interest due Dec. 27 amid “challenging industry conditions” and had begun talks with an ad hoc group of bondholders representing a majority of the outstanding bonds, according to a press release dated Dec. 23.

The company sought a standstill by bondholders and had reached an agreement in principle on the terms last month.

On that basis, the company summoned a bondholder meeting to seek the formal approval of the standstill terms.

The standstill required approvals by holders of a majority of the bonds voting at the meeting.

Before the December notice, on Oct. 25, Sea Trucks had warned that it could be unable to pay interest due in October on the 9% notes.

As previously noted, Sea Trucks is required to keep on a monthly basis one-third of the next interest payment due in a debt service retention account.

The company failed to meet this requirement for October and had “entered into discussion with its largest bondholders to address its liquidity concerns,” the company said at the time.

The bonds were issued on March 25, 2013.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.