TrollDrilling calls meeting to approve recovery for 13¾% bondholders

By Marisa Wong

Madison, Wis., Dec. 21 - TrollDrilling & Services Ltd. has proposed a resolution and is seeking approval from holders of its 13¾% senior secured callable bonds due 2016, according to a notice from bond trustee Norsk Tillitsmann ASA.

Norsk Tillitsmann is calling a bondholder meeting on Jan. 14 so that holders may vote to recover costs associated with the bond issue that they funded.

In order to pass the resolution, half of the outstanding bonds must be represented at the meeting and at least two-thirds of the votes cast must be in favor of the proposal.

Specifically, the company is proposing the following:

• Bondholders funding costs relating to the bond issue will get recovery for those costs plus an additional 15% coupon;

• Any amount paid by the issuer under finance documents as defined in the bond agreement will first be applied to repay the recoverable costs described above and any other fees and expenses by the trustee.

The funding bondholders may postpone the recovery until all amounts under the finance documents have been repaid; and

• The bondholders will authorize Norsk Tillitsmann to give the payment agent any instructions necessary to effect the payment arrangements.

According to the notice, TrollDrilling breached certain terms of the bond agreement and, as a result, Norsk Tillitsmann was put in charge as legal counsel, rig inspector and professional adviser.

The drilling service provider is based in Bergen, Norway.

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