Renewable Energy falls short of quorum for 11% bonds due 2014

By Jennifer Chiou

New York, June 7 - Renewable Energy Corp. ASA announced that there was not a sufficient number of holders of its 11% bonds due 2014 to form a quorum at a June 7 meeting.

Despite this, the proposed resolution to terminate REC Wafer Norway AS as a guarantor of the notes received 96.67% of the votes, according to a notice by Norsk Tillitsmann ASA. The bond agreement remains unchanged.

On May 22, the company also summoned meetings for holders of its floating-rate bonds due 2016 and 9¾% bonds due 2018 in order to shut down the subsidiary's operations.

As announced, the company decided to stop production on April 24, and the subsidiary will continue operating until June 30.

To pass the measure, holders of at least half the bonds have to vote in favor of it. A quorum requires at least half of the bonds represented at the meeting.

Because REC Wafer is a guarantor of the notes, the consent of holders is needed to close the company's operations.

Renewable Energy is a Sandvika, Norway-based company active in the solar energy sector.

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