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Published on 8/16/2012 in the Prospect News Distressed Debt Daily, Prospect News Emerging Markets Daily, Prospect News High Yield Daily and Prospect News Liability Management Daily.

Nexus Floating Production agrees in principle to bond restructuring

By Caroline Salls

Pittsburgh, Aug. 16 - Nexus Floating Production, Ltd. has reached an agreement in principle with an informal committee of the holders of its residual bond loans to restructure the bonds, according to a notice from trustee Norsk Tillitsmann.

Specifically, the agreement was reached with holders of Nexus Floating Production's $37.96 million residual bond issue number one and $29.07 million residual bond issue number two.

Under the agreement in principle, the company will pay $2.85 million in cash to the trustee on behalf of the bondholders in exchange for the release of the bondholders' claims and the cancellation of the bond loan agreements.

The company and Nexus 2 Private Ltd. will also enter into a profit share deed, under which they will agree to distribute any income, proceeds or other interests received from any commercial arrangements related to a Nexus 2 construction contract on a 50/50 basis between the Nexus Floating Production group and NV Profit Share Ltd., a special purpose vehicle incorporated by the trustee on behalf of the bondholders.

In consideration for the release of the bondholders' claims and the execution of the profit share deed, NV Profit Share will issue preference shares to former bondholders who comply with specified provisions by Oct. 12.

Requesting bondholders will receive one preference share for each of $1,000 due and unpaid bond claims.

A bondholders' meeting is scheduled for Aug. 29.

According to the notice, the bond loan agreements matured on April 9 after the bondholders did not approve a request to extend the maturity date to May 31.

Nexus, which supplies harsh-environment floating production, storage and offloading vessels, is located in Singapore and has a project office in Arendal, Norway.


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