Rubicon Offshore unable to repay bonds, seeks extension of maturity

By Angela McDaniels

Tacoma, Wash., April 7 - Rubicon Offshore Holdings Ltd. does not have enough funds to repay its senior secured callable bonds due April 16, 2014 at maturity, according to a notice from trustee Norsk Tillitsmann ASA.

The company said it is discussing a possible restructuring of the bonds, including an extension of the maturity date, with an ad hoc committee of bondholders that holds more than two-thirds of the principal amount of bonds outstanding.

The company is requesting an extension of the maturity date to June 16, 2014 to allow these discussions to continue.

According to the notice, the ad hoc committee has indicated its support for the extension subject to two conditions: the company must make the April 16 interest payment and grant a right under which the holders of two-thirds of the bonds are able to terminate the extension.

Bondholders will vote at a meeting in Oslo at 4 a.m. ET on April 14.

At least half of the bonds must be represented at the meeting in order to forum a quorum, and the holders of at least two-thirds of the bonds represented at the meeting must vote in favor of the extension in order for it to pass.

Rubicon is a Singapore-based offshore oilfield service company.

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