Cecon Shipping seeks to extend maturity of tranche B2 bonds by a month

By Marisa Wong

Morgantown, W.Va., Oct. 23 – Cecon Shipping 2 AS is seeking a further extension of 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 tranche B2 bonds are set to mature on Oct. 31, 2015. The bonds were previously set to mature on Aug. 31, 2015, but bondholders approved an eight-week extension in September.

The company is restructuring its existing junior bonds and amending the terms of its senior bonds in connection with the restructuring.

In order to prevent a default on the tranche B2 bonds while restructuring negotiations are in progress, the company is asking bondholders to approve a four-week extension of the maturity date to Nov. 30, 2015.

The issuer is also proposing to extend the period during which interest on the tranche B2 bonds is to be settled through the issuance of additional tranche B2 bonds. That period would be extended to the extended maturity date.

Bondholders will vote on the proposals at a meeting scheduled for Nov. 6 in Oslo.

To approve the extension, bondholders representing at least two-thirds of the voting bonds must vote in favor of the proposal.

In order to have a quorum, at least half of the tranche B2 bonds must be represented at the meeting.

The largest bondholder has already committed to support the extension, according to the notice.

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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