Norse Energy holders OK amending bond agreements to change borrower

By Melissa Kory

Cleveland, June 27 - Norse Energy Corp. ASA said that there were sufficient bondholders present and a sufficient majority in favor of the amendment to reinstate itself as borrower under the securities' loan agreements at the bondholders' meeting on June 27.

Wholly owned subsidiary Norse Energy Holding Inc. was the borrower prior to the amendment and will remain co-guarantor.

As previously reported, the purpose of the amendment is to ensure that bondholders are not subject to U.S. withholding tax on interest payments.

Affected securities include the:

• 6½% bonds with warrants due 2011;

• Fixed open dollar bonds due 2010;

• 11½% callable open bonds due 2012; and

• 10.707% callable open bonds due 2012.

The company previously called together a May 25 meeting but failed to reach a quorum for the 6½% bonds and the 11½% bonds, while holders of the 10.707% bonds rejected the proposal.

Norse Energy is an oil and gas exploration and production company based in Oslo.

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