Brodrene Greger 10.8% bondholders asked to approve standstill period

By Caroline Salls

Pittsburgh, April 10 – The holders of Brodrene Greger AS’ 10.8% 2014/2019 bonds will vote on a standstill agreement at an April 27 meeting, according to a notice from bond trustee Nordic Trustee ASA.

The trustee said the company is in default under the bond agreement in connection with its failure to pay interest due Jan. 31, negative pledges related to security for €1 million in advanced payments for stockfish and a NOK 5 million short-term loan, as well as the incurrence of financial debt greater than NOK 10 million.

In addition, the trustee said the company does not expect to make an interest payment due on the bonds on April 30.

According to the notice, Brodrene contacted the trustee at the end of 2016 with the intention of finding a solution for the company’s financial situation.

In order to finalize negotiations with its banks, the bondholders and, if necessary, new equity owners, the trustee said the company requested a standstill period.

A bondholders committee indicated that it would support a standstill that runs through June 15.

During that time, the trustee would not accelerate payment in connection with the defaults or take any other enforcement action.

Brodrene Greger is a Rost, Norway prepared and preserved fish company.

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