American Shipping gets OK to lower equity requirement on PIK bonds

By Susanna Moon

Chicago, March 25 - American Shipping Co. ASA said it received the needed consents to lower the equity requirement under its senior unsecured callable pay-in-kind bonds due 2012 to $80 million from $140 million.

As compensation, American Shipping will pay 0.1% of par.

The company said on March 17 that it would hold a meeting in Oslo on Friday meeting to seek authorization for the proposed amendments to the bonds.

Approval of the changes will avoid a possible technical breach under the loan agreement, according to a previous news release from loan trustee Norsk Tillitsmann.

The company also sought power of attorney for the trustee to enter into necessary agreements in connection with documenting the decisions made at the meeting.

The amendments required a quorum of at least 50% of holders represented at the meeting as well as holders of two-thirds of the bonds voting in favor of the resolutions.

The issuer, formerly Aker American Shipping ASA, is a shipping company based in Oslo. Its principal subsidiary has headquarters in Philadelphia.

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