Blom gets waiver from holders of 15% secured bonds and floaters

By Toni Weeks

San Diego, Dec. 21 - Bondholders of Blom ASA's 15% senior secured bond issue 2012/2013 and its floating-rate senior bond issue 2011/2012 unanimously approved at a Dec. 21 meeting in Oslo the waiving of a negative pledge covenant in the agreement for the notes, according to a notice from bond trustee Norsk Tillitsmann ASA.

By waiving the covenant, which is from clause 13.4 of the bond agreements, bondholders are allowing Blom Data AS to pledge its machinery and plant as security for up to €3 million from one of its shareholders.

The waiver required holders of a majority of the bonds to vote in favor of the proposal.

As previously reported, the company said that challenging economic conditions have negatively impacted its results and liquidity, and Blom Data has negotiated an agreement with a Blom shareholder for a €2.5 million loan. The Blom subsidiary will pledge its machinery and plant as security for the loan.

Oslo-based Blom provides geographical information and services.

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