Sea Trucks holders vote to declare default on 9% notes due 2018

By Susanna Moon

Chicago, May 2 – Sea Trucks Group Ltd.’s holders overwhelmingly backed a bondholder group’s proposal to declare default on its 9% senior secured bonds due 2018.

There were enough holders to form a quorum, and the proposed measure was unanimously approved, according to a notice from Nordic Trustee ASA.

As announced April 24, noteholders were being asked to authorize Nordic Trustee to declare the bonds to be in default and to apply for the appointment of provisional liquidators to the company.

The proposal was put forth by an ad hoc committee of bondholders representing more than 61% of the voting bonds.

As of March 31, the company had about $32 million of cash reserves, of which about $14 million was unrestricted cash. This would not be enough to repay the outstanding bonds should they become due for immediate payment, according to the previous notice.

The meeting was held at 7 a.m. ET on May 2 in Oslo.

To approve the proposal, bondholders of at least half of the voting bonds represented at the meeting needed to vote for the resolution. In order to form a quorum, at least half of the voting bonds needed to be represented at the meeting.

As previously announced, the company failed to pay interest due to the bondholders on Dec. 27 and March 27.

In addition, the company failed to transfer an amount equal to one-third of the next interest payment into its debt service retention account in October, November, December, January and February.

Further defaults occurred when the company failed to ensure that a $23.65 million cash payment was received from West African Ventures Ltd. as consideration for the sale of three vessels, failed to obtain independent market valuations during the fourth quarter of 2016 for its vessels and failed to obtain written consent prior to laying up six vessels.

In addition, legal advisers to Roomans attempted to block the company’s access to its main bank accounts during the week of April 17, and West African Ventures recently used “unlawful military force” to prevent the company from retrieving one of its vessels from West African Ventures’ possession in Nigeria.

Sea Trucks Group is an oil and gas marine contractor based in Lagos, Nigeria.

© 2015 Prospect News.
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