Blom ASA (OSE: BLO) has issued a call for bondholder meeting to find a long-term solution to the debt structure. The solutions is planned to include extension of the maturity of the bonds and refinement of the covenant structure in bond loan ”FRN Blom ASA Senior Secured Bond Issue 2009/2012”.
Blom’s cash generation is not sufficient to meet current amortization schedule. Bondholders representing more than 50% of the existing bond loan are supporting a waiver of default clauses so that no Event of Default may be declared prior to 18 November 2011, which would allow for sufficient time to try to work out a viable, long term debt amortization schedule. Blom's stock has advanced 9.5% to 0,23 NOK per share.
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