Davie customer agrees deal with bond holders"

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October 12, 2010

Davie customer agrees deal with bond holders

According to an Oslo Stock Exchange announcement, Cecon ASA has reached a deal with bondholders.

That could be good news for Canada's Davie Yards. Cecon is the Quebec shipbuilder's largest customer, with three 130 m VS4220 offshore construction vessels on order. They should all have been delivered last year. But no work is being done as Davie struggles to restructure under Canada's Companies' Creditors Arrangement Act.

Cecon said today that its board had resolved to approve terms negotiated with a bondholder group representing the largest bondholders and certain shareholders to refinance and restructure the company's outstanding indebtedness, and "provide new funds to give Cecon ASA the power to concentrate on taking advantage of the offshore deepwater construction market."

Cecon ASA CEO Mr Terje P. Tellefsen said: "This is a very good day for us in Cecon. We can now focus on retaining the position Cecon historically has had in the offshore construction market. The markets that Cecon operate within, look quite strong for the coming years, and we are well positioned to take advantage of this. This also gives us the ability to seek a solution around the completion of the vessels under construction in Canada."


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