Sea Production gets votes for bond loan changes to liquidate entities

By Susanna Moon

Chicago, May 16 - Sea Production Ltd. bondholders voted to amend the terms of the loan agreement tied to its callable senior secured bond issue 2007/2012 at a meeting held on May 16.

There were enough holders at the meeting to form a quorum, and the measure received 100% of the votes, according to a notice to bondholders from trustee Norsk Tillitsmann ASA.

The company sought to launch liquidation/winding-up/striking off proceedings for two entities, according to a notice on May 7 from the trustee.

As previously reported, the bondholders agreed in March to extend the maturity date of the bonds to Feb. 14, 2014.

The trustee said Melrose Shipping Co. Ltd. and Langford Shipping Co. Ltd. have no assets following the sale of their Sea Jaguar and Sea Cat vessels. Sea Production had previously granted a security pledge over its shares in Melrose and Langford, the notice said.

Norsk Tillitsmann said Sea Production had been in talks with an informal group holding 93.85% of the outstanding bonds regarding loan amendments that would allow Melrose and Langford to enter into winding-up, liquidation or strike off proceedings.

Also under the amendment, Melrose and Langford will not be required to provide any new guarantees or enter into any new agreements under the loan agreement or continue to provide any security as long as they remain dormant and do not own any significant assets or Sea Production pursues the winding-up, liquidation or striking off of the entities in good faith.

The trustee said the company is also required to grant new or supplemental share charges or pledges over all of its shares in Puffin Ltd. and Wisdom Shipping (S) Pte. Ltd. and procure new unconditional guarantees from Puffin and Wisdom securing all of Sea Production's loan agreement payment obligations.

Sea Production makes floating production storage and offloading units and floating storage and offloading units. The company is based in Oslo.

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