Oceanteam bondholders agree to extend long-stop date on bonds

New York, June 19 – Oceanteam ASA, previously Oceanteam Shipping ASA, said it received approval from holders of its senior callable bonds 2012/2017 to extend the long-stop date to June 23 as well as for some covenant waivers.

At a meeting held in Oslo on Monday, sufficient holders were present to form a quorum and all those voting supported the company’s request.

As announced on June 2 by Nordic Trustee ASA, the company was asking for a waiver of any defaults under the financial covenants and for the covenants relating to filing of the interim financials for the first quarter of 2017 as well as for the 2016 year until June 30 except with the instructions from holders of more than 50% of the bonds.

“In the issuer’s opinion, the proposed terms represent the best alternative currently available to the company to avoid filing for bankruptcy, enabling refinancing of secured debt, obtaining liquidity short-term financing and building enterprise value,” according to the trustee’s notice.

“If the bondholders fail to approve the proposal, there is a distinct risk that the company will file for liquidation,” the release added.

The company had been unable to comply with its financial covenants by the long-stop date of May 31 and was given until June 2 by the trustee, but will be unable to meet that deadline.

As announced May 2, Oceanteam had obtained holder backing to amend the bonds to extend the maturity to May 2, 2022 and cut the coupon to 7%, with 6% payable in-kind, from Libor plus 1,125 basis points.

Oceanteam previously said it was in default on the bonds because it did not make the interest payment due on Oct. 24, 2016.

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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