Rubicon Offshore lacks funds for amortization payment, seeks extension

By Caroline Salls

Pittsburgh, April 17 - Rubicon Offshore Holdings Ltd. does not have enough funds available to make a $15 million amortization payment due April 16 on the loan agreement for its senior secured callable bond issue 2007/2014, according to a notice from trustee Norsk Tillitsmann ASA.

As a result, the trustee said the company is in talks with an informal bondholders committee and other bondholders, which together hold more than 66 2/3% of the outstanding principal amount of the bonds, on a possible restructuring.

Rubicon Offshore is also asking bondholders to extend the amortization payment date to May 16 to allow restructuring discussions to take place.

In exchange for the extension, the company would give the trustee and committee an update of the operational performance of the Rubicon Intrepid and Rubicon Vantage vessels each Tuesday until May 15.

In addition, Rubicon will make public by May 16 any non-public and price-sensitive information that would otherwise prevent trading of the bonds under insider dealing laws or regulations.

A bondholders' meeting is scheduled for April 26.

Rubicon is a Singapore-based offshore oilfield service company.

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