B+H Ocean Carriers seeks standstill from bondholders, other creditors

By Angela McDaniels

Tacoma, Wash., Feb. 6 - B+H Ocean Carriers Ltd. is seeking a 90-day standstill period from its secured creditors, including the holders of its floating-rate bonds due 2013.

According to a notice from bond trustee Norsk Tillitsmann ASA, the company is exploring financing alternatives and "needs to use its resources towards getting the best possible solution for its creditors and stakeholders without having this disturbed by the recurring threat of instability resulting from the possible events of default that might be triggered by the process itself or other reasons."

As a condition for entering into a standstill agreement, some senior financial creditors have required that the bondholders become party to a similar agreement.

At a meeting at 4 a.m. ET on Feb. 14 in Oslo, the bondholders will vote on whether to grant the trustee authorization to enter into a standstill agreement.

To approve the resolution, the holders of at least half of the bonds must be present in person or by proxy at the meeting and the holders of at least two-thirds of the bonds represented at the meeting must vote in favor of the resolution.

During the proposed standstill period, the company could not make any payments other than interest payments, and the secured creditors could not accelerate any loan, enforce any security or begin any suit or action against the company.

The exact terms of the proposed standstill agreement are being negotiated. The company might enter into one standstill agreement with all of the lending groups or separate agreements, and it has not promised a standstill fee.

If the resolution passes, the trustee will be authorized to enter into any standstill agreement it deems appropriate as long as the agreement does not affect the company's obligation to pay interest on the bonds.

Bondholders who wish to attend the meeting are asked to contact Norsk Tillitsmann (47 22 87 94 00) by 10 a.m. ET on Feb. 13.

B+H owns and operates tankers and dry bulkcarriers. The company is based in Hamilton, Bermuda.

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