Reference is made to the press release by Eitzen Maritime Services ASA ("EMS") yesterday regarding proposed amendments to its current bond loan agreements; i) FRN Eitzen Maritime Services ASA Callable Bond Issue 2007 / 2010 (the "FRN 2007 Loan"); ii) 13.15% Eitzen Maritime Services ASA Callable Bond Issue 2009 / 2012 (the "2009 Loan"); and iii) FRN Eitzen Maritime Services ASA Callable Bond Issue 2009 / 2012 (the "FRN 2009 Loan"). The planned restructuring includes a proposal for a new debt repayment schedule and a new equity issue of NOK 146.25 million. The objective of the restructuring plan is to secure a viable financial platform for Eitzen Maritime Services, and a debt amortization schedule that fits the current operating cash flow and market conditions. Camillo Eitzen & Co ASA ("CECO") is the largest shareholder in EMS with a current ownership share of approximately 63%.
We are pleased to announce that CECO has committed to guarantee and subscribe 50% of the equity issue (NOK 73 million). The remaining 50% of the equity issue shall be guaranteed by the bondholders in the 2009 Loan and the FRN 2009 Loan. The equity issue is conditional upon approval of the material elements of the restructuring by the bondholders and EMS shareholders' approval. Bondholders representing more than 2/3 of the votes in the FRN 2007 Loan, the 2009 Loan and the FRN 2009 Loan have committed to vote in favour of the proposed restructuring. CECO and affiliated companies have furthermore committed to vote in favour of the equity issue.
Peter D. Knudsen, CEO of CECO, said:
"EMS is experiencing increased sales and order backlog to the merchant fleet and military forces operating internationally. EMS' size creates purchasing power, and we are confident that both EMS and its clients will benefit from sourcing product sales from reliable sources in a cost efficient manner.
We believe the contemplated restructuring of debt maturities combined with new equity, will ensure a sustainable capital structure as well as creating operational and financial flexibility for EMS. The constructive approach taken by EMS lenders towards the restructuring is responsible, and appreciated by the main shareholder. CECO's support towards EMS is a testimony of our belief that EMS will continue to create shareholder value going forward."
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