FESCO’s $875 Million Note Restructuring


Cleary, Ogier and Dechert advised on the transaction

According to the Far-Eastern Shipping Company PLC (FESCO), the High Court’s order sanctioning the scheme was delivered to the Registrar of Companies and became effective on November 3, 2017. FESCO reports that “the Scheme and the restructuring of the group’s indebtedness under the outstanding 8.00% senior secured notes due 2018 and 8.75% senior secured notes due 2020 implemented by the Scheme are described in the explanatory statement published on 11 October 2017 and the document setting out the terms of the Scheme appended thereto.”

In addition, according to FESCO, “as set out in the Scheme Document, implementation of the Scheme is subject to certain conditions. These include satisfaction of all conditions precedent to the drawdown of the debt financing to be provided by VTB Bank PJSC for the purposes of funding the cash settlement amount required to be paid to scheme creditors under the Scheme. As announced previously, the relevant facility agreement was signed on 3 November 2017. The Group will use its best endeavors to ensure that the conditions are met as soon as possible and will separately notify scheme creditors of the proposed settlement date as required by the Scheme Document. In accordance with the Scheme Document, the settlement shall occur on or before 17 November 2017 (or such later date as may be agreed by at least 75% (by value) of the noteholders being scheme creditors).”

The Cleary team was led by Partner Polina Lyadnova (Picture), who served as Chairperson for the scheme meeting.

Ogier advised on BVI law with a team including Michael Killourhy and Christian Burns-Di Lauro.

Involved fees earner: Michael Killourhy – Ogier LLP; Christian Burns-Di Lauro – Ogier LLP; Polina Lyadnova – Cleary Gottlieb Steen & Hamilton; Polina Lyadnova – Cleary Gottlieb Steen & Hamilton;

Law Firms: Ogier LLP; Cleary Gottlieb Steen & Hamilton;

Clients: Far-Eastern Shipping Company PLC;

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Author: Ambrogio Visconti.