American Shipping to seek approval for amendments to PIK bonds

By Jennifer Chiou

New York, March 17 - American Shipping Co. ASA, formerly Aker American Shipping ASA, announced a March 25 meeting in Oslo for holders of its senior unsecured callable pay-in-kind bonds due 2012 at which it will seek authorization for proposed amendments.

The company is specifically looking for consents to permanently reduce the equity requirement under its loan agreement to $80 million from $140 million.

In return, American Shipping said it will offer compensation of 0.1% of the principle outstanding under the bonds.

According to a news release from loan trustee Norsk Tillitsmann, approval of the changes will avoid a possible technical breach under the loan agreement.

The company is also looking for the trustee to be given power of attorney to enter into necessary agreements in connection with documenting the decisions made at the meeting.

The amendments require a quorum of at least 50% of holders represented at the meeting as well as holders of two-thirds of the bonds voting in favor of the resolutions.

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

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