Kvaerner, the Anglo-Norwegian engineering and construction group, has been pulled back from the brink of collapse by Yukos Oil and a group of Norwegian and international banks including DnB, Nordea, and Norsk Tillitsmann.
The proposed rescue package comes in the form of a NKr3bn rights offering. Kvaerner has also entered into a deal with its lenders to propose a conversion of approximately NKr 4.5 billion in debt, to a subordinate convertible note. Existing loans will also be rescheduled to the end of 2004.
‘This is a solution that mirrors the efforts of many parties who have genuinely wanted to find a long-term solution for Kvaerner,’ said Harald Arnkvaern, Chairman of Kvaerner. ‘Important shareholders, led by Yukos, have contributed to this solution which gives us the opportunity to move forward, develop the Company – and demonstrate to the world that Kvaerner, with its 35,000 employees and unique qualities, is a viable going concern,’ he concluded.
The solution is dependent on acceptance by all lenders, including bondholders and certificate owners. Further, the refinancing plan must have support from a two-thirds majority of the attending shareholders at an Extraordinary General Meeting of Kvaerner.