Blom holders OK waiver for floaters, extension for 15% bonds due 2013

By Susanna Moon

Chicago, Feb. 22 - Blom ASA said it obtained a waiver for its floating-rate senior bonds and a maturity extension for its 15% senior secured bonds due 2013 by unanimous decision.

The company sought approval for the proposals at a bondholder meeting held in Oslo on Feb. 22.

Each measure obtained 100% of the votes cast, and there were enough holders to forum a quorum for each series of notes, according to a notice from bond trustee Norsk Tillitsmann ASA.

Blom said on Feb. 7 that it would seek a waiver for the floaters related to the pledged shares of Blom CGR SpA.

The company also sought to extend the maturity of the 15% bonds to April 4, 2013 from Feb. 21, 2013, according to a previous trustee notice.

In order to form quorum, at least half of the bonds needed to be represented at the meeting. Of those, a two-thirds vote was needed for the 15% bonds and a majority of the floaters.

"The challenging macroeconomic conditions in parts of Europe continue. A lasting shift in the awarding of new contracts will have a negative impact on the company's results and liquidity situation and has made additional compensatory measures necessary," the previous notice said.

The floaters were issued in 2011 and originally set to mature in 2012, and the 15% bonds were issued in 2012.

Previous waiver

As noted before, holders of the 15% notes and the floaters unanimously approved at a Dec. 21 meeting in Oslo the waiving of a negative pledge covenant in the agreement for the notes.

By waiving the covenant, bondholders allowed Blom Data AS to pledge its machinery and plant as security for up to €3 million from one of its shareholders.

The waiver required holders of a majority of the bonds to vote in favor of the proposal.

Oslo-based Blom provides geographical information and services.

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