Leading Norwegian offshore providers supplier DOF ASA is to make one other try at getting a restructuring plan in place. This is the newest growth within the chain of occasions set in movement when shareholders rejected a proposal put to them at a November 11, 2022 extraordinary basic assembly. That led to the corporate submitting for reconstruction with the Hordalund district court docket and subsequently electing a brand new board of administrators.
The new board instantly went to work on getting an summary of the corporate’s scenario, together with particularly valuations and assessments of liquidity and future money movement. In parallel, it investigated whether or not it could be potential to get settlement on any higher deal for shareholders from the monetary collectors for any different options, together with refinancing of the debt, the sale of ships and a share issuance.
“Unfortunately,” says the board, “none of these solutions have been possible to realize.”
Before placing its new proposal to shareholders, the DOF board should get it accredited by each its collectors and the reconstructor appointed by the court docket, Egil Horstad, a companion within the Schjødt law firm.
The board says that whereas its new restructuring plan is taken into account by its monetary collectors it should work to doc help for the plan from a adequate variety of shareholders. It says the plan has already acquired help from Møgster Offshore AS, which owns roughly 31.6% of the shares in DOF ASA.
The restructuring proposal relies on the restructuring settlement voted down by shareholders on November 11, 2022.
The authentic proposal would have meant that shareholders would personal 4% of the shares within the firm. After this proposal was voted down, says the board, it was doubtless that the shareholders would find yourself with a 1% stake.
The new proposal implies that the present shareholders will personal 3.75% of the corporate’s shares after debt conversion. The proposal is in any other case an identical to the earlier proposal.
“If the proposal is not adopted,” says the board, “there will be no prospect that the company will be able to achieve a reconstruction and the court will probably open bankruptcy after a report from the reconstruction committee. The business will continue to operate as today through the subsidiary DOF Service AS and its underlying companies. However, shareholder value will in all likelihood be lost.”
In an Oslo Stock Exchange submitting, the DOF ASA board goes into extra bleak particulars of what may lie forward ought to its proposal fail. You can learn the submitting HERE
