Norwegian offshore vessel owner DOF is facing hurdles as it tries to negotiate a debt restructuring deal. Smaller shareholders have partnered up looking to put a stop to a restructuring plan that they believe would leave the company in the hands of incoming investors and large shareholders.
According to Norwegian business daily Finansavisen, the group of shareholders is aiming to get support from a third of the shareholders and block the rescheduling of debt as part of the restructuring struggle.
In a statement on Wednesday, DOF addressed its minority shareholders saying that a robust long-term financing solution is required for the group to maintain its status as a going concern and that, in the meantime, it is dependent on continued standstill agreements with its creditors.
“Based on the financial situation of the group, such a solution is expected to require the conversion of debt to equity, which consequently will significantly dilute the current holders of the equity.
“There are no market developments or changes of the outlook of the group justifying another conclusion, and the shareholders are urged to take this into account when considering alternatives,” DOF said.
The company added that the restructuring solutions being discussed with the lenders do not involve any element of new equity in the form of cash and no unequal treatment of the shareholders of the company is currently contemplated.
DOF has secured a deferral of around $2.1m in debt until September 30. A refinancing solution is not yet in place.