NBT holders push for meeting to declare default on 14% bonds due 2013

By Susanna Moon

Chicago, Dec. 18 - NBT AS bondholders are seeking to declare a default of the company's 14% senior secured callable bonds due 2013.

The holders representing 10% of the notes are seeking to call a meeting on Jan. 9 in Oslo, according a notice by trustee Norsk Tillitsmann ASA.

Bondholders representing at least half of the bonds must be represented at the meeting in order to form a quorum. Of those, at least one-half must vote in favor of the measure for it to pass.

As previously noted, NBT is seeking approval from holders related to its plans to pay off the bonds using $250 million convertible loan proceeds.

The company is seeking approval to postpone the maturity of the bonds until the earlier of March 19, 2014 and five business days after issue of the convertible loan, according to a notice by Norsk Tillitsmann on Dec. 6.

NBT is proposing that no default interest accrue beginning Dec. 30.

A bondholder meeting will be held on Dec. 20 in Oslo.

Bondholders representing at least half of the bonds must be represented at the meeting in order to form a quorum. Of those, at least two-thirds must vote in favor of the measure for it to pass.

NBT is an international project company focused on windpower and biomass projects.

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