Cecon to seek holder approval to extend 5% tranche A callable bonds

By Jennifer Chiou

New York, Dec. 12 – Cecon ASA gave notice of a meeting for holders of its 5% tranche A senior secured callable and putable bond dated 2011/2013 with warrants.

The meeting will take place on Dec. 31 in Oslo.

The company is seeking holder authorization to extend the maturity date to March 31, 2015 from Dec. 31, 2014, according to a notice from Nordic Trustee ASA.

The company also said it sent a petition to Norwegian courts to open a debt restructuring agreement. Cecon said that this is in the best interest of all stakeholders due to the company not having sufficient liquidity for some creditors submitting bankruptcy petitions.

The company stated that it has received commitments from the largest holder of the bonds in support of its proposed amendment.

The notice said that the creditor protection is necessary to establish a moratorium for a final settlement with all creditors to the company. The creditors in question are primarily Dutch companies.

The company said that the claims originate from an original claim against Cecon NL BV, which is a wholly owned Dutch subsidiary, where Cecon ASA was guarantor on some claims.

The notice added that a final settlement between the Dutch subsidiary, which is currently an estate, and its client Gaz De France has not yet been reached.

Holders of at least two-thirds of the bonds represented at the meeting must vote in favor of the proposal in order for it to be approved. A quorum will be reached if a majority of the bonds is represented at the meeting.

Questions may be directed to Oyvind Jensrud (omj@rever.no; 47 9083 6106 or 47 2108 0592).

Cecon is a subsea installation contractor located in Arendal, Norway.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.