Norway’s Bergen Group says it has nearly finalised a restructuring and refinancing process to secure the long-term future of the company.
The restructuring key elements include a voluntary debt restructuring to halve creditors’ claims against the group exceeding NOK 100,000 ($12k) and settlement of the remaining claims, a pre-committed private placement to raise NOK 22 million ($2.7m), and a loan facility of NOK 20 million ($2.4m) from the company’s two main shareholders at favourable terms.
The company is also looking to reduce existing debt to Eastern European Investment Management by more than 50% and transform the remaining portion of the debt to a convertible loan of EUR 1.8 million ($2m).
Lastly, a subsequent repair issue with gross proceeds of up to NOK 5.3 million ($640k) is planned.
“This refinancing is considered crucial to enable Bergen Group ASA to start structuring the future industrial group” commented Hans Petter Eikeland, CEO of Bergen Group.