Ocean bottom node seismic player Axxis Geo Solutions (AGS) is looking to address its debt situation and improve its balance sheet through a capital restructuring.
The Oslo-listed company said it has over some time been in active dialogue with its current stakeholders and other strategic and financial investors.
As a result of this process, a group of financial investors has proposed that the company raises $12-15 million in new equity at a share price of NOK 0.1.
The group of financial investors has pre-committed to participate with $12 million in such contemplated equity issue.
AGS noted that the participation in the contemplated equity issue is conditional upon several elements.
Namely, all of the company’s creditors accepting a final settlement of their claim equal to 15 per cent of the outstanding amount, if receiving settlement in cash, alternatively accepting a conversion of their claim into shares at a share price of NOK 0.5. Trade creditors with claims of USD 20,000 or less will receive full settlement.
In addition, TGS should accept an extension of the maturity date for their promissory note to at least 30 June 2022.
Further condition is that the debt to Eksportkreditt either gets paid down by proceeds from selling the vessel Naiad, or the debt following the vessel.
An extraordinary general meeting of Axxis should also approve conversion of debt and the equity issue.
AGS has entered into an exclusive agreement with the financial group of investors with the aim of entering into a voluntary solution with the company’s creditors as soon as possible.
If all relevant creditors do not accept this voluntary solution, the company intends to file for a court protected reconstruction pursuant to Norwegian law.
Reports say that the company has already scheduled a court hearing addressing a petition for bankruptcy.
To that end, AGS has engaged ABG Sundal Collier and SpareBank 1 Markets as financial advisers and Advokatfirmaet Schjødt as its legal adviser.