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DOF Subsea to force restructure; shareholders rejected bondholder plan
Chicago, Nov. 11 – DOF Subsea AS and DOF ASA held an extraordinary general meeting on Friday to implement a restructuring on the company’s debt; however, the meeting votes were against the resolutions to implement the restructuring in a consensual manner.
The group will now undertake a restructuring as a forced process pursuant to the Norwegian Reconstruction Act or through a bankruptcy.
The restructuring proposals related to the company’s senior floating-rate bonds (ISIN: NO0010971005), the $175 million of 9˝% senior bonds (ISIN: NO0010788177) and the NOK 1 billion of senior bonds (ISIN: NO0010836810).
The company was proposing to convert bonds from each series, together with accrued and unpaid interest, into new bonds totaling NOK 675 million on a pro rata basis and conversion shares with a par value of NOK 0.05 each, also issued on a pro rata basis, which would have represented 53.33% of the total issued share capital of the company. Upon issue, the conversion shares would have been subject to a reverse split and consolidated at a 50:1 ratio.
The new bonds would have matured Dec. 17, 2027 and would have been deemed to have accrued interest from June 30 at Nibor plus 200 basis points, which would have been payable on Dec. 31 by issuance of additional bonds under the same ISIN. The unsecured series would be guaranteed by a newly established holding company, Dofcon Holding. The new bonds would be callable at par at any time, subject to a change-of-control put and also subject to mandatory repayment under certain circumstances.
The conversion shares were to be issued in two classes, under separate ISINs, as ordinary shares and B shares. Both classes would have carried the same conversion rights, including voting rights, but the B shares would be subject to certain trading restrictions.
DOF Subsea is a Storebo, Norway-based oil and gas industry services provider.
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