Cecon board to request bankruptcy declaration from Norwegian court

By Kali Hays

New York, April 27 – Cecon ASA’s board of directors intends to ask the City Court of Aust-Agder in Norway to declare the company bankrupt as it has been unable to present a plan for a compulsory composition, according to a Monday news release from Cecon.

A compulsory composition under Norwegian Bankruptcy Law demands 60% by numbers or 75% by claims approval from unsecured creditors.

Since January, Cecon said that it has “explored all possibilities for a debt restructuring solution” that “while being complex, was promising” and would have afforded creditors “a minimum of 25% dividend over time.”

Due to recent “unforeseen events,” Cecon’s cash balance, which is in escrow against a Gaz de France contract, was given to Gaz de France against Cecon’s “will and understanding of the escrow terms,” according to the news release.

“This has eliminated a very important building block in the restructuring solution,” the release states.

Gaz de France (GdF), or GDF Suez, is a natural gas provider and energy trader based in Paris.

Cecon also said that it has been in separate discussions with Rever Offshore AS and its junior and senior bondholders regarding a corporate and debt restructuring of Rever and its subsidiaries, according to the release.

The company said this process will not be affected by the bankruptcy proceeding.

Cecon is a subsea installation contractor for the offshore oil and gas industry and is based in Arendal, Norway.

© 2015 Prospect News.
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