You got to know when to hold em,
Know when to fold em,
Know when to walk away,
Know when to run…
Aage Figenschou, managing director of Oslo-listed Swan Reefer, knows all that, and also when to smile. He could well afford to on June 1, after MeesPierson and ING agreed a restructuring of $243m in total mortgage debts. The figure was a remnant of two tranches, a senior one worth $220m (both banks) and a junior one of $30m (ING) raised in the summer of 1998 in connection with the ambitious $164.5m takeover of Irgens Larsen’s shipping operations. The banks were concerned about the loans due to Swan’s low liquidity, a dead reefer market, and low vessel values. They had declared Swan to be in default, and had given the company until June 1 to work out a recapitalisation and restructuring, or else. The “or else”, of course, was liquidation.
This is only an excerpt of Swan Reefer Debt Restructuring
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