Reservoir Exploration to raise capital, convert debt and sell assets

By Caroline Salls

Pittsburgh, April 29 - Reservoir Exploration Technology ASA needs to carry out a proposed debt restructuring, including a capital raise, a conversion of debt into equity and a sale of some assets as a result of its financial position and debt, according to a notice from bond trustee Norsk Tillitsmann ASA.

As of Oct. 31, Reservoir had $65.3 million in total debt, of which $28.36 million plus interest was due to suppliers with unsecured claims.

Under the proposed restructuring, suppliers will be asked to convert their claims into equity and the company will raise $5 million in cash via a share issue.

The trustee said raising the cash is a condition to the debt conversion but conversion creditors can waive the condition at their discretion.

Proceeds of the cash raise will be applied to repayment of debt.

A general meeting on adoption of the conversion, the cash raise and the proposal is expected to be held by May 31. A bondholder meeting is scheduled for May 8.

Reservoir Exploration is an Oslo-based marine geophysical company.

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