EuropeFinance and InsuranceOffshore

DOF faces debt restructuring block from minority shareholders

Minority shareholders of Norwegian offshore vessel owner DOF have racked up enough voting rights to block the company’s debt restructuring deal from going ahead, a move said it would dilute smaller investors’ holdings and leave the company in the hands of incoming investors and largest shareholders.

A group of small shareholders, which joined forces in August last year, said it had reached 34% of the outstanding shares in the Austevoll-headquartered company – achieving negative control that provides a veto right to the investors and prevents the majority shareholders from deciding something that may diminish the venture investors’ equity.

Financially-troubled DOF has been working with banks and bondholders to restructure its debt of around NOK19bn ($2.14bn), most likely through its conversion into shares. The minority shareholder group (DOF Minoritetsgruppen) proposed raising fresh funds by issuing new shares in which all shareholders could participate. In October last year, they reached 30% ownership, which subsequently increased on the back of claims that smaller investors would be squeezed out in the restructuring process.

Møgster Offshore is DOF’s largest shareholder, with 31.6%. The company recognised a net loss of $14.4m in the third quarter of 2021. It has a fleet of 59 vessels, consisting of 15 anchor handling tug supply vessels, 14 platform supply vessels, and 30 subsea vessels. 

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
Back to top button