European Energy lacks holder approval needed to amend senior bonds

By Susanna Moon

Chicago, June 23 – European Energy A/S failed to garner the needed approval to amend its senior bonds for the restriction to provide cross collateral for the purpose of project financing.

Holders representing 57.33% of the outstanding principal amount voted by the written procedure, which closed on June 22, and holders representing 34.11% of the par amount voted to approve the measure, according to a press release by agent CorpNordic Sweden AB.

As a result, the votes cast in favor of the measure fell short of the two-thirds needed to adopt the request.

The issuer was unable to reach an agreement regarding the size of the consent fee with some of the holders during the written procedure, the release noted.

The decision by the holders, however, does not affect the issuer’s operations nor its financial positions due to the nature of the proposed amendment, and the company will continue to adhere to the terms and conditions of the bonds, the release added.

Holders could vote until 11 a.m. ET on June 22. Holders needed to be of record as of June 5.

As announced June 2, the proposal sought to extend the possibility for European Energy and its group companies to provide security by way of share pledges for their subsidiaries in order to facilitate ordinary course project financings, according to a previous company notice.

The consent fee was €125 per bond, which was conditioned on the approval of the proposed request by the holders in the written procedure, the company previously said.

The Soborg, Denmark-based company develops, finances and builds wind and solar farms.

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