FESCO Reaches Milestone in Restructuring Deal
Image Courtesy: FESCORussia’s Far-Eastern Shipping Company (FESCO) has obtained a guarantee approval from a majority of its shareholders for outstanding senior secured notes totaling around USD 644 million.
The company said that the notes consist of 8% senior secured notes due 2018 and 8.75% senior secured notes due 2020.
The provision of the guarantee, with shareholder approval to be obtained as a condition subsequent, formed part of the restructuring terms agreed between FESCO and the ad hoc group of noteholders earlier this year.
Obtaining the approval by October 20, 2017 was one of the key milestones under the terms of the standstill and lock-up agreement between, among others, FESCO and certain of the noteholders dated September 6, 2017.
As announced on October 11, 2017, the High Court of Justice of England and Wales has ordered a meeting of scheme creditors to be held on October 27, 2017 to consider and approve the restructuring scheme of the group’s indebtedness under the USD Notes.
If approved, the scheme will be subject to subsequent approval of the court at a sanction hearing that is scheduled to take place on November 3, 2017.
