Bourbon Group's major shareholder Jacques de Chateauvieux has found new allies as he attempts to prevent banks from taking over the restructuring French OSV company.
He has clinched an agreement with "historic shareholders" to work in concert with him and his group of like-minded investors as they try to come up with an alternative refinancing plan.
The new group controls 8.82% of Bourbon and will work with de Chateauvieux's allies who have 60.71%, bring the total to 69.53%.
The move was made "because of the growing uncertainty and difficulties" of the company and to strengthen the controlling interest in Bourbon to support "the current and future common policy," Bourbon said.
De Chateauvieux's group includes his own shareholding, his company Jaccar Holdings, his brother Henri de Chateauvieux, Cana Tera, Mach Invest and Mach Invest International
They signed a shareholders' agreement in 2014 to work together.
New commitment to company
This expires on 26 June, but they have agreed an extension of five years.
Governance commitments made by this cohort remain in place, but they have dropped a stock lock-up provision.
The new group will join them for five years if French financial authorities confirm that no public offer is required for the remaining shares.
Earlier this month, Bourbon revealed the board is seeking to evaluate two rival refinancing plans.
Its main lenders and vessel lessors, with 75% of its debt, are proposing to inject €120m ($135m) of new money in the form of debt and a reduction of existing debt of more than €1.4bn through a conversion into stock.
This would result in 93% of the group's capital being held by the banks.
De Chateauvieux and financial partners are offering €80m in fresh debt and a €164m loan, which would make it possible to pay off lenders who want out.
"The proposed business model answers the new market expectations while relying on the historical Bourbon partners network and provides a reimbursement of the debts based on the free cash flow generated by each vessel," Bourbon said.
In January, Bourbon renewed a general waiver with the majority of its debt holders, allowing the company to suspend debt repayments.
The original waiver was finalised with Bourbon’s lenders in April 2018 to delay payments for 12 months.
The company’s outstanding loans and mounting losses stood at around €1.12bn in January.
