Cecon Shipping seeks further extension of tranche B2 bond maturity

By Marisa Wong

Morgantown, W.Va., Aug. 24 – Cecon Shipping 2 AS is seeking bondholder approval to further extend the maturity date of its tranche B2 senior secured callable and putable bonds, issue 2013/2015, according to a notice from bond trustee Nordic Trustee ASA.

The issuer wants to extend the maturity date by eight weeks to Oct. 31, 2015. The bonds are currently set to mature on Aug. 31.

In July Cecon had sought to extend the maturity date to Aug. 31, 2015 from July 15, 2015. Bondholders approved the prior extension at a bondholders’ meeting held on July 15, as previously reported.

According to the latest announcement, the company is still negotiating a restructuring of its existing bonds. Specifically, the company is trying to restructure its junior bonds and amend its senior bonds in connection with the restructuring.

The issuer is asking bondholders for the maturity date extension in order to prevent a default on the tranche B2 bonds while restructuring talks are in progress, the notice said.

Bondholders will vote on the proposal at a meeting scheduled for Sept. 7 in Oslo.

To approve the extension, holders of at least two-thirds of the bonds represented at the meeting must vote in favor of the proposal.

In order to form a quorum, at least half of the bonds must be represented at the meeting.

Cecon Shipping is a shipping unit of Cecon ASA, a subsea installation contractor for the offshore oil and gas industry based in Arendal, Norway.

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