American Shipping to seek approval for amendments to bonds due 2012; Aker offers to purchase bonds

By Jennifer Chiou

New York, Sept. 27 - American Shipping Co. ASA, formerly Aker American Shipping ASA, announced an Oct. 5 meeting in Oslo for holders of its senior unsecured callable pay-in-kind bonds due Feb. 28, 2012 at which it will seek authorization for proposed amendments, including one to extend the maturity date to Feb. 28, 2018.

The company is also looking to holders to authorize it to make interest payments until the extended date in the form of additional bonds.

American Shipping additionally said it has received notice that Aker ASA, directly or through one of its subsidiaries, is offering to purchase all outstanding bonds at 40% of par as of the last interest date, Aug. 29.

According to a news release from loan trustee Norsk Tillitsmann, approval of the changes will entitle participating holders to a flat compensation payment of 0.1% of the principal.

The company is also looking to have the $80 million equity requirement permanently deleted.

The amendments require the presence of holders of at least two-thirds of the bonds at the meeting and approval from at least half of the amount represented.

American Shipping is a shipping company based in Oslo. Its principal subsidiary has headquarters in Philadelphia.

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