Sanjel 7½% bondholders to vote on standstill and acceleration options

By Caroline Salls

Pittsburgh, Feb. 25 – The holders of Sanjel Corp.’s 7½% callable bond issue 2014/2019 will decide whether to approve requested standstill agreements or exercise default-related rights at a March 10 bondholders’ meeting, according to a notice filed by bond trustee Nordic Trustee ASA.

The trustee said Sanjel did not make the $11.25 million interest payment due Dec. 21 on the bonds and breached financial covenants under its senior secured revolving credit agreement and the bond agreement.

As a result, the company has asked bondholders not to exercise its default-related rights under a standstill arrangement that would terminate on June 15. Sanjel is also requesting approval of a standstill related to the revolver default from its secured lenders. That arrangement would terminate on April 30.

The lender standstill is subject to bondholder approval of the arrangements.

Sanjel is a Calgary, Alta.-based global energy service company.

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