Norwegian offshore vessel owner DOF Group is facing a major problem with its $2bn refinancing as a group of minority investors amassed what they claim is a blocking vote in the company.
The rebel group's leaders, Jim Oystein Holden and Jon Magne Asmyr, said on Friday that they now control a combined 34% of DOF's equity through cooperation with hundreds of small shareholders.
"The group has negative control," they added.
The minority shareholders had been aiming for a 33% stake.
The group was formed last August to fight what it saw as a likely significant dilution of their shareholdings in a debt-for-equity swap with banks and bondholders.
The minority investors are demanding equal treatment and believe sufficient cash can be raised through share sales in which everyone can participate.
They fear the restructuring will put the company at the mercy of "vulture investors".
The group started off with support from shareholders controlling 11.6% of the stock. By mid-October, this had reached 30%.
DOF has been contacted for reaction but has not commented on the matter since a statement in September.
Warning from DOF
At that time, it warned that "a robust long-term financing solution is required for the group to maintain its status as a going concern".
The company reiterated that it is dependent on continued standstill agreements with creditors, adding: "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."
The shipowner also moved to reassure investors that the refinancing deal will not involve new equity in the form of cash, and there will be no "unequal treatment" of shareholders.
DOF's largest shareholder is Helge Mogster's Mogster Offshore, with 31.6%, but then there is a big gap to institutional backer BNP Paribas on 3%.
Towards the end of last year, DOF won approval of its debt standstill agreements until the end of January.
This involves bondholders as well as 91% of its secured lenders.
The company is the only major Norwegian offshore vessel operator not to have concluded a refinancing after years of tough markets.
DOF logged a net loss in the third quarter of NOK 128m ($15m), against a loss of NOK 406m in the same period of 2020.
Revenue edged up to NOK 2.05bn from NOK 2.03bn.
