A successful restructuring of Oslo-listed Viking Supply Ships looks likely after bondholders agreed to amend their bond agreement. The company’s bonds will be changed into equity and cash.
About 50% of the outstanding par value of bonds will be converted to quoted class B shares in Viking Supply Ships A/S’s Sweden-based, Stockholm-listed parent company Viking Supply Ships AB. The bonds are being converted at 55% of par, the company said. Equal to SEK1.50 a Class B share. The other half of the outstanding bonds will be redeemed in cash at 35% of their par value.
Viking announced its planned restructuring in June, but negotiations with three core bondholders took some time. They wanted a conversion to cash at a discounted price rather than a conversion to equity. However, Viking had said plainly that the only alternative to its planned restructuring was bankruptcy.