rss icon Subscribe
desktop mobile

Bourbon BoD to Analyze Restructuring Proposals

File Image: CREDIT Bourbon

Posted by Michelle Howard

Following the submission of financial restructuring proposals subject to conditions precedent, the Board of Directors of BOURBON Corporation reviewed today the two proposals which are considered relevant to the interests of the group, its employees, its partners and its shareholders.

In particular, the Board relied on the review done by an ad hoc committee of four Directors (two of whom are independent) entrusted since July 2018 with assessing the impact and salient points of each restructuring projects and reporting on them to the Board of Directors:

- The offer from BOURBON's main lenders and vessel lessors (75% of the group's debt) proposes $134 million in new money in the form of debt and a reduction of existing debt of more than $1.57 billion through a conversion into capital, resulting in 93% of the group's capital being held by its lenders. This offer is valid until June 27, 2019;

- The offer led by the main shareholder Jacques de Chateauvieux and his financial partners, proposes a contribution of $89.7 million in new money in the form of debt and a $184 million loan, which would make it possible to pay off lenders who would wish so. The proposed business model answers the new market expectations while relying on the historical BOURBON partners network and provides a reimbursement of the debts based on the free cash flow generated by each vessel. This project does not involve any dilution of shareholders at the end of the restructuring.

At this stage, the Board of Directors is not able to pronounce itself in favor of one of these proposals since they still include a number of conditions, and in particular the agreement of all parties. The Board's main goals remain to guarantee a sustainable level of debt, to receive new money to support the group's growth, and a stable shareholders structure that has the trust of BOURBON partners and teams.

Consequently, the Board has tasked the general management of BOURBON Corporation to pursue negotiations in order to obtain final and binding conditions for these two offers, and meanwhile, extend their validity. The final offers will be further reviewed by the Board as early as possible.

Jun 19, 2019

 

Contracts

Port of Aarhus Orders New Tug from Uzmar

(Photo: Uzmar)

The Port of Aarhus and UZMAR Shipyard connected May 29 via video conference to finalize a contract

Russian JV Orders Walk-to-work Icebreaker

(Image: Royal Niestern Sander)

After a tender procedure, Dutch shipyard Royal Niestern Sander and a joint-venture between

EPS Orders Gas Carrier Trio from Hyundai Mipo Dockyard

© ilkercelik / Adobe Stock

South Korean shipbuilder Hyundai Mipo Dockyard has secured an order for three medium sized gas

Legal

Chevron Oil Cargo Tangled in US' Venezuela Sanctions

© Vasilis Thomaidis / MarineTraffic.com

Chevron Corp crude oil cargo has become embroiled in U.S. sanctions on shipping companies for

Canada Recommends Mariners Wear Face Coverings

© matpit73 / Adobe Stock

Canada's Transport Minister Marc Garneau announced he is expanding the requirements for the use of

Cox Diesel Outboard Passes EPA Tier 3 Testing

(Photo: Cox Powertrain)

Cox Powertrain announced its 300-horsepower diesel outboard has achieved U.S. EPA Tier 3 approval

Maritime Apps