Noreco asks bondholders to approve license sale, shorten notice period

By Marisa Wong

Morgantown, W.Va., March 2 – Noreco Norway AS is asking holders of its 6½% senior secured callable bonds due 2018 to approve two transactions and some amendments to the bonds, according to a notice from bond trustee Nordic Trustee ASA.

Bondholders will vote on the proposals at a meeting scheduled for March 16 in Oslo.

To approve the proposal, holders of more than two-thirds of the bonds represented at the meeting must vote in favor of the resolution. In order to have a quorum, at least half of the voting bonds must be represented at the meeting.

The company had summoned a bondholders’ meeting on Jan. 20, as previously reported. Bondholders voted on a similar proposal at a Feb. 3 meeting. There were enough bondholders present to form a quorum, but the proposal only received 62.01% of the votes, falling short of the two-thirds threshold.

As before, the company is asking bondholders to approve the sale of its exploration license interests, organization and management systems to Djerv Energy AS and the transfer of its 4.36% participating interest in the Enoch license to CapeOmega AS.

In return, the company is offering an early cash sweep.

The company is also proposing to shorten the notice period for future bondholders’ meetings to five business days from 10 business days in order to quickly present and resolve issues with bondholders.

Noreco is a Stavanger, Norway-based energy company.

© 2015 Prospect News.
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