Codfarmers: Postponement of bond payment stymied by lack of quorum

By Toni Weeks

San Luis Obispo, Calif., May 6 - Codfarmers ASA announced that there were not enough bondholders present at its May 6 meeting to form a quorum, and no valid resolution was made concerning the postponement of a payment on the company's 15% senior unsecured convertible bond issue 2007/2011, according to a notice from trustee Norsk Tillitsmann ASA.

As previously reported, Codfarmers was not able to make an April 15 payment on the bonds and was seeking bondholder approval at the May 6 meeting to postpone the payment until Aug. 15.

As noted before, the bondholders approved a voluntary debt rearrangement under which their total claim was to be released against a payment of NOK 10,000 plus 50% of the claim in excess of NOK 10,000.

The payment was to be made no later than April 15. However, the trustee said Codfarmers could not make the payment on that date because of insufficient liquidity.

Codfarmers is an Oslo-based cod-farming company.

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