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Aurora LPG gets waiver for Nov. 9 amortization on floaters due 2017
By Susanna Moon
Chicago, Nov. 8 – Aurora LPG Holding ASA obtained holder approval at the meeting held Tuesday in Oslo to waive the NOK 30 million amortization due Nov. 9 on its senior floating-rate notes due 2017.
There were enough holders to form a quorum, and the proposal was passed by 85.58% of the votes cast, according to a notice by Nordic Trustee ASA.
Aurora said on Oct. 25 that it was asking for the waiver because of “strained liquidity,” after suffering from the severe deterioration in the spot market for VLGC shipping.
The company said it has been working to secure short-term liquidity, including $21 million of secured debt.
“Spot rates are currently at the lowest level observed since 2009 and may remain low for the foreseeable future. This, in combination with the company’s scheduled amortizations on bank loans and bonds, results in the company facing severe liquidity challenges in the near future as a stand-alone entity,” the notice said.
BW LPG is making a buyout offer for Aurora, and the companies are continuing talks with lenders and noteholders to obtain waivers and amendments to reduce the short-term needs of the company before the offer closes.
Specifically, the company was asking to defer the NOK 30 million payment until maturity and to install a new interest payment schedule for a total of NOK 200 million to be paid, including NOK 90 million due at maturity.
To form a quorum, at least half of the voting bonds needed to be represented at the meeting. To pass, the amendment required two-thirds of the votes cast.
The floaters were issued in 2015.
Aurora LPG is a holding company for shipping activities based in Oslo.
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