Blom requests waiver for floaters, extension for 15% bonds due 2013

By Susanna Moon

Chicago, Feb. 7 - Blom ASA said it is seeking a waiver for its floating-rate senior bonds and a maturity extension for its 15% senior secured bonds due 2013.

Blom will seek a waiver for the floaters related to the pledged shares of Blom CGR SpA, according to a notice from bond trustee Norsk Tillitsmann ASA.

The company also is seeking to extend the maturity of the 15% bonds to April 4, 2013 from Feb. 21, 2013.

The company will seek approval for the proposals at a bondholder meeting to be held in Oslo on Nov. 22.

In order to form quorum, at least half of the bonds must be represented at the meeting. Of those, two-thirds must vote in favor of the 15% bonds and a majority of the floaters in order for the proposals to pass.

"The challenging macroeconomic conditions in parts of Europe continue. A lasting shift in the awarding of new contracts will have a negative impact on the company's results and liquidity situation, and has made additional compensatory measures necessary," the notice said.

The floaters were issued in 2011 and originally set to mature in 2012, and the 15% bonds were issued in 2012.

Previous waiver

As noted before, holders of the 15% notes and the floaters unanimously approved at a Dec. 21 meeting in Oslo the waiving of a negative pledge covenant in the agreement for the notes.

By waiving the covenant, bondholders allowed 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 hurt its results and liquidity, and Blom Data 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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