NBT holders vote 14% bonds not in default at Thursday meeting

By Marisa Wong

Madison, Wis., Jan. 9 - Holders of NBT AS' 14% senior secured callable bonds due 2013 met on Thursday to vote on whether the bond issue is in default.

There were sufficient bondholders present at the meeting to form a quorum, but the proposed resolution only obtained 14.14% of the votes and did not pass, according to a notice by trustee Norsk Tillitsmann ASA.

On Dec. 18 the trustee announced that more than 10% of the bondholders were seeking to declare the 14% bonds in default and due for immediate payment.

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

As previously reported, a bondholders' meeting was also held on Dec. 20. Holders at that meeting voted in favor of amending the 14% bonds.

NBT proposed amendments related to its plans to pay off the bonds using $250 million convertible loan proceeds.

Specifically, the company wanted 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 Dec. 6 notice.

NBT proposed that no default interest accrue beginning Dec. 30.

The proposals received 88.48% of the votes at the Dec. 20 meeting.

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

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