Norway’s DOF Group, which has a fleet of greater than 60 offshore service vessels, now faces both a pressured restructuring underneath the Norwegian Reconstruction Act, or chapter.
At a unprecedented common assembly (EGM) immediately, the corporate’s shareholders rejected acceptance of a proposed consensual restructuring that had been agreed to by the corporate’s main collectors.
Prior to the EGM, the shareholders have been despatched a letter from the collectors that famous that they maintain claims in opposition to the corporate equal to roughly NOK 23 billion (about $2.3 billion).
“With few exceptions,” stated the letter, “no interest or amortisation has been paid on such claims for the last 30 months. DOF ASA’s equity and parts of DOF’s secured and unsecured debt is lost. The Restructuring therefore provides for creditors to convert an aggregate amount of approximately NOK 6.2 billion into equity in DOF. Notwithstanding the fact that the debt claims that will be converted rank senior to the shareholders’ equity, and hence such equity is lost, the Restructuring provides for DOF’s shareholders to retain a 4% stake in DOF in return for their co-operation. The proposal to the shareholders is therefore by all accounts fair and equitable.”
The firm advised the shareholders that the collectors’ letter makes clear:
i. there isn’t any room for additional negotiations with the collectors;
ii. the implementation of the Restructuring as proposed to the EGM is the one consensual various to a declare from the collectors for full compensation of the loans; and
iii. within the occasion that the shareholders fail to approve the required resolutions on the EGM, the proposed Restructuring will likely be carried out as a pressured course of pursuant to the Norwegian Reconstruction Act or by means of a chapter in DOF, offering the shareholders with much less or no worth in comparison with the proposed consensual Restructuring.
