Bulk Invest Creditors Oppose WB Chartering’s Sale

Oslo-listed Bulk Invest ASA said that some of its main creditors have requested a legal injunction, requiring a reversal of the sale of Western Bulk Chartering AS to Kistefos Equity Operations AS.

The unnamed creditors are linked in the media reports to six Japanese investors who claim the deal was underpriced.

Western Bulk ASA sold its wholly-owned subsidiary Western Bulk Chartering at the beginning of this month in an attempt to stay financially viable.

Western Bulk Chartering was sold in an auction to Norway-based private investment company Kistefos AS for a cash consideration of USD 16 million. Under the terms of the sale, Kistefos AS agreed to assume the company’s remaining debt amount of USD 31 million.

“The company believes that the alleged claims are completely unfounded and will defend itself against them,” Bulk Invest ASA said.

Bulk Invest ASA added that it was continuing its restructuring efforts, and is in an on-going dialogue with its main creditors as the company looks for potential solutions to the its “challenging financial situation.”

Moreover, the company has mandated a financial advisor to assist with the restructuring of the company’s obligations related to its chartered-in fleet.

The mandate also includes a plan to potentially raise additional equity capital if a viable solution with the main creditors is achieved.