Global Rig gets OK from holders of 13% bonds due 2015 for rig purchase

By Toni Weeks

San Luis Obispo, Calif., Jan. 3 - Global Rig Co. ASA announced that there were sufficient bondholders of its 13% senior secured callable bonds due 2015 present at its Jan. 2 meeting to form a quorum, and the proposal to grant a waiver to the bond agreement to acquire additional rigs passed unanimously, according to a filing from trustee Norsk Tillitsmann.

As previously reported, the company said it was necessary to purchase additional rigs in order to strengthen its operations.

Under a clause in the bond agreement, this type of investment may only move forward if at least 40% is financed by new equity. Further, the company is not allowed to use any of its operating cash flow for this purpose, according to another clause.

Global Rig said prior to the meeting that it had held discussions with holders of a majority of the bonds, who stated that they would vote in favor of the proposal.

The onshore rig owner and lessor is based in Norway.

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