Oceanic Champion garners holder support to sell some, all 8% bonds

By Susanna Moon

Chicago, March 28 – Oceanic Champion AS obtained the needed approval to sell some or all of its 8% senior secured bonds due 2020.

The proposal was made by written resolution as announced Monday and adopted on Tuesday with the required majority, according to a notice by Nordic Trustee ASA.

To facilitate the sale, the company was soliciting the approval of two-thirds of the bondholders.

The voting deadline had been set for 5 a.m. ET on April 11.

Also announced on Monday, the issuer had received $12.15 million of its 8% bonds from CGG SA in return for agreeing to amendments to the charter arrangements for the security vessel.

The issuer’s parent company is CGG Eidesvik Ship Management AS.

Oceanic had secured the needed majority of votes to amend the 8% notes to sell them in the open market and to revise the bond repayment schedule.

The issuer 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.”

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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