12 February 2018
To holders of the up to SEK 200,000,000 senior secured bonds due 2018 with NOK ISIN NO0010771322, SEK ISIN: NO0010771330 and USD ISIN NO0010771314 (the “Bonds”) issued by Östermyra Bruk AB (publ) (the “Issuer”) on 12 September 2016.
Intertrust (Sweden) AB is the trustee for the Bondholders under the Terms and Conditions.
In accordance to Clause 11.1 (b) the Issuer has exercised the right to extend the original Final Redemption Date with (1) month on two occasions, by giving notice to the Trustee and Bondholders on 2 January 2018. Therefore the Final Redemption Date for the Bonds falls on 12 February 2018.
As per 12 February 2018 the Issuer has failed to redeem the outstanding Bonds in full with an amount per Bond equal to the Nominal Amount together with accrued but unpaid Interest.
The Trustee hereby informs the Bondholders that an Event of Default under Clause 14.1 (Non-Payment) of the Terms and Conditions are currently continuing as a result of the Issuer’s non-payment.
The Issuer has on 8 February 2018 issued a press release with information about a proposal that the Issuer intends to present to the Bondholders regarding the continued operations of the Issuer, the handling of the Bonds and the development of Barents Center. The proposal is expected to be announced no later than 23 February 2018.
Pursuant to Clause 14.10 (Acceleration of the Bonds), the Agent shall within 20 Business Days of actual knowledge of the Event of Default decide whether the Bonds shall be accelerated. If we, during the stipulated time period, decide to not accelerate the Bonds, we will promptly seek instructions from the Bondholders.
On the basis that we have been informed by the Issuer that it intends to present a proposal to the Bondholders regarding the continued operations of the Issuer, the handling of the Bonds and the development of Barents Center no later than 23 February 2018 and based on our discussions with the Issuer, together with our legal counsel, regarding the contemplated proposal to the Bondholders, we have decided to not accelerate the Bonds for payment with immediate effect as for now.
As soon as we receive more information from the Issuer, we will come back with information to the Bondholders regarding the process forward and regarding the solutions and proposals that will be offered to the Bondholders. If the Issuer has not published its proposal by 23 February 2018, we will decide whether the Bonds shall be accelerated (within the stipulated 20 Business Days period) or not and seek instructions from the Bondholders.
Please note that Bondholders representing at least 10 per cent. of the Adjusted Nominal Amount may request that a Bondholders’ Meeting is convened for the purpose of deciding on a matter relating to the Finance Documents, including instructions to the Agent to accelerate the Bonds.
The agent:
Intertrust (Sweden) AB
Anna Litewka
Email: trustee@intertrustgroup.com
Tel: +46 8 402 72 11