Norse asks holders to amend bond agreements to change borrower

By Jennifer Chiou

New York, June 17 - Norse Energy Corp. ASA announced that it will call together bondholders at a June 27 meeting to vote on proposed amendments allowing it reinstate itself as the borrower under the securities' loan agreements.

Wholly owned subsidiary Norse Energy Holding Inc. is the current borrower and would remain co-responsible for payments as guarantor if the changes are approved.

According to a release from trustee Norsk Tillitsmann ASA, the purpose of the proposal is to ensure that bondholders are not subject to U.S. withholding tax on interest payments.

Affected securities include the:

• 6½% bonds with warrants due 2011;

• Fixed open dollar bonds due 2010;

• 11½% callable open bonds due 2012; and

• 10.707% callable open bonds due 2012.

Holders of the 10.707% bonds are not summoned for the meeting, but are being provided with information on the proposed amendments.

The company previously called together a May 25 meeting but failed to reach a quorum for the 6½% bonds and the 11½% bonds, while holders of the 10.707% bonds rejected the proposal.

Norse Energy is an oil and gas exploration and production company based in Oslo.

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