American Shipping seeks consents from PIK bondholders

By Angela McDaniels

Tacoma, Wash., Jan. 15 - American Shipping Co. ASA said it is seeking consents from the holders of its senior unsecured callable pay-in-kind bonds due 2012 to temporarily disregard any unrealized, non-cash gain or loss from changes in the fair market value of interest rate hedging arrangements in the calculation of equity.

The change would be effective for the fourth quarter of 2008 through the third quarter of 2009.

Under the terms of the bonds, the company must maintain at least $140 million of equity. Without the change, American Shipping's equity will fall below this requirement because of falling interest rates, according to a company notice.

Bondholders will vote on the proposal at a meeting on Jan. 23 in Oslo. The company needs consents from holders of a majority of the bonds.

American Shipping is a shipping company based in Oslo. Its principal subsidiary has headquarters in Philadelphia.

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