Completion of Viking Supply Ships’ restructuring is on the horizon after bondholders voted to amend their bond agreement and convert the Oslo-listed company’s bonds into shares and cash.
Some 50% of the outstanding par value of bonds will be converted to quoted class B shares in Viking Supply Ships A/S’s Sweden-based parent company Viking Supply Ships AB, which is listed on NASDAQ Stockholm.
The class B shares will be converted at a price of SEK 1.50 per share, the bonds being valued at 55% of par, the company said.
The remaining 50% of the outstanding bonds will be redeemed in cash at a price equivalent to 35% of their par value.
The resolution marks the end of a dispute with a certain of its bondholders that has been ongoing since early June, when Viking announced its restructuring.
Viking previously described discussions with a committee of three core holders in the bond issue ‘Viking Supply Ships A/S 2012-17 FRN’ as “quite challenging” and said its only alternative would be to declare bankruptcy if a resolution could not be found.
The bondholders had been holding out for a solution where the bonds would be redeemed in cash at a discounted price.