The Bondholders’ meeting in Renewable Energy Corporation ASA (OSE: REC) held today did not approve the proposed changes to the bond loan agreement requested on June 22nd. Oslo Børs and The Financial Supervisory Authority of Norway have decided to suspend the shares and related instruments in REC ASA until further clarification of the situation. The refusal puts the entire complex refinancing plan in serious doubt. Chairman Jens Ulltveit-Moe has already declared the emission dead. The Board is now in a crisis meeting to decide what to do.
The holders of an outstanding 320 million NOK bond were asked to make amendments as a part of the wider refinancing effort. These include an extension in maturity, a new conversion price, a partial redemption and denomination with principal amount reduced from 100 to 59.3% with a part of that redeemed in cash. As far as timetable goes, the fulfilment of the necessary conditions needs to happen before July 31st
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