Notice to bondholders in senior secured bonds issued by Filago Prosjekt Holding 1 AS

To the bondholders in senior secured bonds with ISIN NO 001 0865504 (NOK Bonds) and NO 001 0865470 (SEK Bonds) (the “Bonds”) issued by Filago Prosjekt Holding 1 AS (the “Issuer”) on 29 September 2017.

Intertrust (Norway) AS (the “Trustee”) is acting as Trustee on behalf of the Bondholders under the terms and conditions relating to the Bonds dated 29 September 2017 (the “Terms and Conditions”)

Capitalized terms not otherwise defined herein shall have the same meaning as in the Terms and Conditions.

A Norwegian translation of this notice is included in the full notice which can be downloaded as per below. In case of any inconsistency between the Norwegian translation and the English text, the English text shall prevail. 

Notice to bondholders

Information from the Bondholders’ Committee (the “BHC”) in respect of the ongoing Written Procedure.

In relation to the ongoing Written Procedure initiated 23 March 2020, the BHC has reviewed and discussed the proposal from Kreditfonden, subject for the Written Procedure (the “Proposal”).

Reference is made to the status update described in the Notice to bondholders issued 11 March 2020, whereas the HC and the Administrator of the Bankruptcy has been in contact with parties showing interest for the properties and the Administrator of the Bankruptcy is considering the option to initiate a forced sale of the properties where potential buyers will have the opportunity to place bids.

The BHC is of the opinion that the Bondholders should not accept the Proposal from Kreditfonden.

The Proposal from Kreditfonden constitute a purchase price for the properties which amounts to NOK 20,000,000. The total outstanding demand of the Bondholders constitute approximately NOK 156,000,000.

The BHC hereby asks the Bondholder to consider that both the demand of the legal mortgage to the Administrator of Bankruptcy amounting to approximately a maximum of NOK 5,200,000 and other occurred expenses as per today amounting to approximately NOK 1 100 000 will have to be covered by the proposed purchase price for the Properties. With these expenses withdrawn from the purchase price of NOK 20,000,000 following the Proposal from Kreditfonden, the Bondholders will most likely be left with a recovery which amounts to less than 10 % of invested capital.

The BHC is of the opinion that the acceptance potential for the Proposal is low from the Administration of Bankruptcy and other creditors, meaning that the Bondholders will be facing a a forced sale situation regardless of the Proposal. This means that if the Proposal is accepted by the Bondholders, unnecessary costs will occur for the Bondholders. In the light of this the BHC is of the opinion that it will be better to reject the Proposal in order to start the process of arranging for a forced sale instead.

The above described opinion of the BHC is only based on the status of the situation per today, without the involvement of any professional advisors. The BHC therefore disclaims any liability whatsoever for the outcome of the Bondholders following the opinion of the BHC.

For further information, please contact:

Eleonore Foss

eleonore.foss@intertrustgroup.com

+47 958 14 513

Andreas W. Hennyng

andreas.w.hennyng@intertrustgroup.com

+47 971 87 151