Swedish offshore support ships operator Viking Supply Ships has reached an agreement with bondholders over bond restructuring. Also, Viking on Thursday said its CEO Christian Berg stepped down from his position.
Following months of what it had described as “quite challenging” negotiations with bondholders, Viking said that the bond agreement was reached on Wednesday during the bondholders’ meeting. Viking had previously called its bondholders to ease their stance regarding the financial restructuring of the company, otherwise, bankruptcy would be the only option.
According to the proposal, 50% of the outstanding par value of bonds will be converted to quoted class B shares in Viking Supply Ships A/S’ parent company, Viking Supply Ships AB, at SEK 1.5 per share ($0.18), the bonds being valued at 55% of par. The remaining 50% of the outstanding bonds will be redeemed in cash at a price corresponding to 35% of par.
To remind, the cash-strapped Viking Supply Ships, hurt by the deteriorating conditions in the offshore support vessels market, has recently finalized the in-principle agreement with the banks regarding the company’s revised long-term financial platform.
CEO steps down
Also, Viking said on Thursday, CEO Christian Berg stepped down from his position but will remain on various projects within the group and act as an advisor to the board of directors. Chairman of the Board Bengt A. Rem is appointed as interim CEO of the group.
Earlier, Berg had taken a temporary leave from the position of Viking Supply Ships A/S CEO back in February. At the time, he remained CEO of the parent company Viking Supply Ships AB, but with a reduced workload.
Offshore Energy Today Staff