Oceanic Champion to seek revised repayment schedule for 8% bonds

By Angela McDaniels

Tacoma, Wash., Jan. 10 – Oceanic Champion AS plans to ask the holders of its 8% senior secured bonds due 2020 to approve a revised repayment schedule for the installments on the bonds, according to a bondholder notice from parent company CGG Eidesvik Ship Management AS.

The issuer expects to be able to present the proposal by mid-January and will then summon a bondholder meeting.

CGG is looking to improve costs and its financial position. As part of this effort, discussions have been held between representatives of CGG, on behalf of Exploration Investment Resources II AS in its capacity as guarantor for the charter party, and Oceanic Champion.

CGG said it presented a proposal implying a reduced charter rate and settlement of a balance by receipt of bonds executed by CGG in a meeting last week and followed up in writing thereafter. The proposal has so far neither been discussed by nor accepted by the board of Oceanic Champion.

CGG said a reduced charter rate will have a direct effect on Oceanic Champion’s ability to comply with the existing interest and installment schedule under the bonds.

So far, the charterer has met its obligations under the charter party – including payment of the charter hire for January – and Oceanic Champion is providing the service under the charter party according to the terms and provisions of the charter party, according to the notice.

CGG Eidesvik Ship Management of Bergen, Norway, operates a fleet of seismic vessels.

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