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Viking Supply saved after bondholders vote to restructure bonds

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.

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Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.
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