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Aurora LPG asks to waive Nov. 9 amortization on floaters due 2017
By Susanna Moon
Chicago, Oct. 25 – Aurora LPG Holding ASA is asking bondholders to waive the NOK 30 million amortization due Nov. 9 on its senior floating-rate notes due 2017 as a result of “strained liquidity.”
Aurora will hold a meeting on Nov. 8 in Oslo to ask for approval.
The company has suffered as a result of the severe deterioration in the spot market for VLGC shipping and has been working to secure short-term liquidity, including $21 million of secured debt, according to a notice by Nordic Trustee ASA.
“Spot rates are currently at the lowest level observed since 2009 and may remain low for the foreseeable future. This, in combination with the company’s scheduled amortizations on bank loans and bonds, results in the company facing severe liquidity challenges in the near future as a stand-alone entity,” the notice said.
BW LPG is in the process of making a buyout offer for Aurora, and the companies are continuing talks with lenders and noteholders to obtain waivers and amendments to reduce the short-term needs of the company before the offer closes.
Specifically the company is asking to defer the NOK 30 million payment until maturity and to install a new interest payment schedule for a total of NOK 200 million to be paid, including NOK 90 million due at maturity.
The proposal has received support from holders of NOK 57 million, or 33%, of the notes.
To form a quorum, at least half of the voting bonds must be represented at the meeting. To pass, the amendment requires two-thirds of the votes cast.
The floaters were issued in 2015.
Aurora LPG is a holding company for shipping activities based in Oslo.
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