Oceanic Champion holders OK revising repayment timeframe for 8% bonds

By Susanna Moon

Chicago, March 8 – Oceanic Champion AS secured the needed majority of votes to amend its 8% senior secured bonds due 2020 by written resolution, according to a notice by Nordic Trustee ASA.

As announced March 7, the company was asking for bondholder approval to sell the 8% bonds in the open market and to revise the bond repayment schedule.

Oceanic was 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.

The issuer also was 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 had been set for 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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