Latina Offshore seeks to extend 8 7/8% bonds due 2016 until Sept. 30

By Susanna Moon

Chicago, Aug. 8 – Latina Offshore Ltd. is soliciting consents to amend its 8 7/8% senior secured callable bonds with step-up due July 31, 2016 after failing to repay the notes at maturity.

The company has scheduled a bondholders meeting for Aug. 22 in Oslo.

Specifically, the company is asking to extend the maturity date until Sept. 30, 2016 and to waive interest for late payment, according to a notice from bond trustee Nordic Trustee ASA (+47 22 87 94 00 or mail@nordictrustee.com).

In addition, the issuer plans to pay the $1.25 million of interest that was due July 31 as of the summons date of Aug. 8.

Under some standstill terms, holders representing more than two-thirds of the voting bonds have agreed to keep from declaring default on the bonds until the earlier of Aug. 16 and the time that the bond meeting is adjourned or canceled.

In order to form a quorum, at least one-half of the voting bonds must be represented at the meeting. To approve the change, more than two-thirds of the voting bonds must be cast in favor of the proposal.

Clarksons Platou Securities AS (+47 48 3000 35 or simen.flaaten@clarksons.com) is the financial adviser.

As background for the summons, the company said it has experienced problems with its drilling contracts, with negotiations proving to be “difficult and lengthy” and “yet to be resolved.”

The notes were issued in 2014.

The issuer is the offshore division of Mexico-based Constructora y Perforadora Latina SA.

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