Viking Supply Ships bondholders OK standstill, in-kind coupon payment

By Angela McDaniels

Tacoma, Wash., April 8 – Viking Supply Ships A/S said the holders of its senior bonds due 2017 gave it approval to pay the interest due March 21 in cash and in kind and agreed to a standstill until April 13 to implement a restructuring plan.

The company will pay a coupon of 3.7% in cash and 5.72% in kind.

Bondholders voted at a meeting on April 8. The proposed resolution obtained 84.69% of the votes, according to a company news release.

According to a March 22 notice from bond trustee Nordic Trustee ASA, Viking was holding discussions with a committee of bondholders that hold more than half of the voting bonds.

The company said its liquidity position is strained due to the “severe industry downturn” and the steep drop in oil prices, which in turn has reduced demand for the company’s services.

The company has obtained a standstill with its bank lenders until April 13.

Viking, formerly known as Rederi Transatlantic AB, is a Goteborg, Sweden-based company active within the shipping industry.

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