Norway's DOF Group is attempting to calm a rebellion by small shareholders banding together to fight a refinancing plan that could all but wipe out their investments.
The Oslo-listed offshore vessel owner has previously warned that a long-term restructuring of $2bn of debt will involve a conversion of liabilities to shares, "significantly" diluting the holdings of existing investors.
The "DOF minority group" has been posting updates to the Oslo Stock Exchange under the names of investors Jim Oystein Holden and Jon Magne Asmyr.
These reveal the group, which claims hundreds of members, was formed on 28 August by investors controlling 11.6% of the company. By Monday this had risen to 20%.
The aim is to reach a blocking vote of a third of the shares in DOF.
'Vultures' moving in?
The group fears the restructuring will put the company at the mercy of "vulture investors", Finansavisen reported.
DOF's biggest shareholder is Helge Mogster's Mogster Offshore, with 31.6%, but then there is a big gap to institutional backer BNP Paribas on 3%.
Holden ranks ninth on 0.8%.
Several of the minority group work in the offshore sector, according to a group statement.
They are demanding "equal treatment", according to Asmyr.
"All shareholders, large and small, must be treated equally and given the same rights," he told the E24 newspaper.
The group believes a debt swap is not necessary as demand improves for offshore vessels.
The shareholders also argue that lenders could have done more to help the company through the downturn in oil and gas markets.
DOF responds with warning
In response, DOF said in a statement to the Oslo Stock Exchange that "a robust long-term financing solution is required for the group to maintain its status as a going concern".
The company reiterated it is dependent on continued standstill agreements with creditors.
"There are no market developments or changes of the outlook of the group justifying another conclusion, and the shareholders are urged to take this into account when considering alternatives," DOF warned.
The shipowner also moved to reassure the investors that the refinancing deal will not involve new equity in the form of cash, and there will be no "unequal treatment" of shareholders.
Complex talks
"The dialogue with the lenders is complex, but constructive. A refinancing solution is not yet in place, and no assurance can at this stage be given that the company will be able to find a solution with its creditors," DOF added.
Earlier in September, another lender in subsidiary DOF Subsea agreed to a standstill of repayments.
A settlement deal was reached with the rebel bank that was blocking an account linked to a DOF Subsea ship.
The bank had demanded repayment of a $47m loan for an unnamed vessel.
DOF is now repaying the loan at a "substantial discount".
As a result, the share of DOF Subsea's secured lenders that have now agreed suspensions of instalments has risen from 88% to 95%.
The group-wide standstill deal expired on 31 August, however, and DOF has said it is in talks about extending this.
