Blom bondholders to vote on restructuring at Sept. 19 meeting

By Marisa Wong

Madison, Wis., Sept. 5 - Blom ASA is seeking approval of a proposed restructuring from holders of its 15% senior secured bonds issue 2012/2013, floating-rate senior bonds issue 2011/2012 and 2% subordinated convertible callable bonds issue 2012/2017, according to a notice from bond trustee Norsk Tillitsmann.

Blom is looking to restructure the bonds, because it does not have sufficient liquid assets to support the current loan maturity structure.

The issuer requested that the bond trustee call a bondholders' meeting to vote on the proposed restructuring. The meeting will be held on Sept. 19.

Norsk Tillitsmann said that a majority of bondholders, in total controlling more than two-thirds of each bond issue, have been part of the restructuring talks and are prepared to vote for the proposal at the meetings.

At least half of the bonds of each issue must be represented at the meeting in order to form a quorum. Approval of the proposals requires votes from a two-thirds majority of each bond issue.

Proposed restructuring

Blom is proposing, among other things, the following for the 15% bonds, the floating-rate bonds and the 2% convertibles:

• The outstanding bonds, together with accrued interest up through Sept. 27, will be redeemed through a conversion of the bonds into stock; and

• The bondholders will waive any right to receive interest on the bonds for the period after Sept. 27.

In addition, the company is seeking to amend the maturity date for the 15% bonds to Nov. 26, 2013.

As reported, the company previously obtained bondholder approval to extend the maturity date of the 15% bonds to June 26, 2013 from April 26, 2013. The issuer was then granted a further extension so that no payments would be due prior to Sept. 26.

Oslo-based Blom provides geographical information and services.

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