Dof Subsea has proposed a short deferral of an upcoming bond payment after bondholders demanded more information ahead of a vote on the firm's refinancing plans in two weeks.
An instalment of the firm's senior unsecured bonds (DOFSUB07), which are due in 2020, was scheduled for 22 October but could be postponed for 17 days.
The bonds' trustee, Nordic Trustee, today proposed that the payment be pushed back to 8 November, following a request from holders of over 33% of the bonds.
The ad hoc group of bondholders said more time was needed for Dof Subsea to disseminate information about its refinancing proposals, which bondholders will vote to approve at a meeting on 30 October.
"The ad hoc group have engaged with the issuer [Dof Subsea] and its advisers to try and reach agreement regarding the format of the process and discussions, including agreeing a framework for the sharing of information and the appointment of professional advisers," Nordic Trustee said on Wednesday.
Bondholders representing at least 66% of the voting bonds must vote in favour of the proposed refinancing for it to be approved.
Refinancing plan
Dof Subsea has a runway of liquidity that will last until the end of November, but the firm needs to find a long-term solution that includes a sustainable debt repayment schedule and covenant structure.
As well as the possible standstill in bond payments, Dof Subsea is "in discussions" to extend the maturity of its bank loans and could receive a possible capital injection from the Dof Group, as TradeWinds reported this month.
Dof Subsea has NOK 5.9bn ($640m) of secured bank debt with its lenders.
Dof group picture
Dof Group said in early October the proposed refinancing package is "likely" to include raising NOK 200m ($21.9m) in new equity.
A "substantial portion" of the new shares will be used to support the refinancing of Dof Subsea, in which the group owns a 65% stake.
Laco, indirectly the largest shareholder in Dof, has committed to supporting the group in the proposed equity raise.
The shareholder is a holding company owned and controlled by Helge Mogster, chairman of the Dof Group.
Four members of Dof Subsea's board quit in early September, as TradeWinds has reported.
Norwegian investor Frederik Mohn left the boards of Dof and Dof Subsea two years after selling out of the companies.
Two days later, directors Neil Hartley, Ryan Zafereo and Alan Schwartz gave notice they would leave the company "forthwith."
