Viking Supply Ships(VSS) has called in its bondholders in a bid to avoid bankruptcy.
A company spokesperson said: “The process towards the banks has been very constructive and a framework for a solution is agreed in all material respects subject to agreement with the bondholders. The discussions with the bondholders, however, have been quite challenging.”
VSS has already gone to three major bond holders, offering a deal that includes the deferral of the maturity of the bonds.
“Since the recovery of the unsecured creditors in the event of a bankruptcy is likely to be extremely limited, or in effect zero, VSS believes this proposal, which does not involve any reduction of any part of the bondholders’ claim, to be a fair and attractive offer. This offer has, however, on several occasions been flatly rejected by the above-mentioned committee of bondholders,” the spokesperson added.
VSS has since stressed if the bondholders don’t accept more flexibility winding-up the business could become it’s only option.
“VSS would therefore strongly encourage the bondholders to engage in a constructive dialogue on realistic premises to seek to find a solution which will allow a financial restructuring of VSS,” a spokesperson said..
“VSS is willing to explore various alternatives, including a conversion of bonds into shares in Viking Supply Ships AB, listed on NASDAQ OMX Stockholm segment Small Cap, at present market values, respectively 36% of par value and SEK 1.70 per share, but is not in a position to offer redemption for cash. However, shares received can be freely sold by the recipients. Should a solution not be reached the only realistic outcome is bankruptcy of VSS.”