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Scandinavian Biogas seeks waiver under SEK 230 million bonds
By Susanna Moon
Chicago, Nov. 9 – Scandinavian Biogas Fuels International AB (publ) is asking for waivers under its SEK 230 million of outstanding senior secured bonds due 2020 by way of written procedure through Nordic Trustee & Agency AB as agent.
The voting forms must be sent by 11 a.m. ET on Nov. 28. The record date is Nov. 14.
Specifically, the issuer is asking holders to waive the issuer’s requirements under the maintenance test for the third and fourth quarters of 2018 because of negative earnings results, according to a notice.
The negative financial results for the 12 months ended September “is mainly derived from increased operational and maintenance costs at Sodertorn, legal expenses, penalty fees in South Korea, increased personnel costs in Norway as well as the delayed commissioning of the facility in Skogn, Norway,” the release said.
As a result, the issuer failed to meet the maintenance test as of Sept. 30 and thinks it will be unlikely to meet it in the fourth quarter.
To reestablish compliance under the bond terms, “the issuer is evaluating a variety of strategic and capital-based structural alternatives aiming to secure a long-term and sustainable capital structure.”
The waiver would provide time to evaluate the options in order to prevent further breach, the notice said.
The agreement by the bondholders to the waivers requires that the issuer contribute equity and/or subordinated loans of at least SEK 16 million and up to a maximum of SEK 27 million by March 31, 2019.
To form a quorum, bondholders representing at least 20% of the adjusted nominal amount must respond by way of the written procedure. The proposal requires responses by a majority of 50% of the adjusted nominal amount.
For questions, contact the agent at voting.sweden@nordictrustee.com or +46 8 783 79 00.
The bonds were issued in 2016.
Scandinavian Biogas Fuels AB produces biogas in Sweden and South Korea.
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