Norske Skog Gets Enough Bondholder Support to Extend 2017 Notes

Norske Skogindustrier ASA got enough support from bondholders to extend the maturity of its 2017 notes.

Holders of about 76 percent of the 218 million euros ($248 million) of bonds due next June agreed to swap their notes for securities due in December 2026, perpetual notes and the right to subscribe to new shares, the Norwegian paper maker said in a statement. It needed support from 75 percent of holders to make the proposal binding on all.

A bondholder meeting to approve the offer will take place on Monday, it said in the statement.

Norske Skog has been trying to restructure its debt since September. Competing proposals by different groups of creditors blocked previous attempts to postpone payment of bonds due in 2016 and 2017.

Blackstone Group LP’s GSO Capital Partners and Cyrus Capital Partners agreed last month to give the company about 115 million euros, allowing it to withdraw an unpopular proposal to exchange 121 million euros of notes due June 2016. The funds hold about 68 percent of the 2017 notes, Norske Skog said on March 18.