Singapore’s Goliath bondholders vote in favor of pursuing claims

By Marisa Wong

Morgantown, W.Va., March 1 – Holders of OSA Goliath Pte. Ltd.’s $160 million 12% senior secured callable bonds due 2018, Goliath Offshore Holdings Pte. Ltd.’s $220 million 12% senior secured callable bonds due 2017 and Goliath Offshore’s $43,396,993 15% super senior secured callable bonds due 2017 voted in favor of a proposal presented at a bondholders meeting held on Tuesday.

There were sufficient bondholders present at the meeting to form a quorum, and the proposed resolution obtained 100% of the votes, according to a notice from Nordic Trustee ASA.

On Feb. 22, the company called the bondholders meeting to approve a proposal relating to potential litigation against third parties.

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

Background

An event of default was declared under the OSA Goliath bonds on Feb. 28, 2014. A recovery process has since been underway that includes a sale of the vessel OSA Goliath to Goliath Offshore against partial write-down of OSA Goliath’s debt and the simultaneous issuance of the Goliath Offshore bonds.

Following the write-down, $42,227,922 remains outstanding under the OSA Goliath bonds.

As part of the recovery process, bondholders may pursue potential claims against third parties in an effort to maximize recovery. The potential claims would be made by the bond trustee on behalf of all bondholders. The proposed structure for this step in the recovery process, including funding of litigation costs, is part of the proposal presented at Tuesday’s meeting.

Goliath’s subsidiaries offer marine transportation services. The holding company conducts its business in Singapore.

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