The uncertainty around DOF Subsea’s future sent the value of the 2018 bonds to their lowest level since February, trading below 94 cents on the dollar, before bond investors handed a victory to DOF Subsea that allowed the company to restructure its debt as part of a recapitalisation.

Likewise, $175m in 2022 bonds traded above 89 cents on the dollar after falling below that level.

The 2018 bonds represent a small piece of DOF’s nearly $2bn in debt, most of which is owed to banks. But the looming maturity gave 2018 bondholders more leverage over DOF Subsea’s future, says Turner Holm, managing director of credit research at Clarksons Platou.

“No one wants to sink the company for this amount of outstanding debt,” Holm said. “But the bondholders are keen to get their money back.”

Recognising those concerns, parent DOF and its main shareholder, Mogster Mohn, made another concession ahead of the vote. They agreed to buy back up to $12m of the 2018 bonds at face value, ensuring that some of the bondholders would be made whole on their investment.

“The bondholders are using their position to extract as much value as possible,” Holm said.

While bondholders saw a win, DOF Subsea’s owners have already taken a hit on the value of their investment.

DOF and First Reserve took DOF Subsea private at an equity valuation of $619m. But DOF’s new equity injection implies a value of $430m for DOF Subsea, with the parent now owning close to two-thirds of the company.

First Reserve agreed to the new equity injection from DOF. But the new equity implies First Reserve’s stake is now worth about $150m compared to an investment of around $300m in 2008.