Oceanic Champion asks to amend repayment timeframe for 8% bonds, seeks buyback

By Susanna Moon

Chicago, March 7 – Oceanic Champion AS is proposing a sale of the 8% senior secured bonds due 2020 in the open market and to revise the bond repayment schedule.

The company is asking for bondholder approval by written resolution.

Oceanic is proposing to make a partial prepayment of the bonds equal to the balance of its bank accounts less an amount needed to preserve a credit balance of at least $100,000, according to a notice by Nordic Trustee ASA.

The issuer also is proposing to amend the maturity date to June 30, 2020 to match the term of the amended charter contract.

Any proceeds of the sale of bonds would be applied to the prepayment of the bonds.

From the maturity date, the remaining bonds would be repaid “over a reasonable period” from six months to 24 months “depending on the prevailing circumstances.”

The voting deadline is 7 a.m. ET on March 21.

As announced Jan. 10, CGG is looking to improve costs and its financial position.

CGG previously 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 a previous notice.

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

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