Kvaerner Shareholders Approve Rescue Plan
|Monday, November 19, 2001
Kvaerner ASA's stock rose 12 percent after the bondholders gave preliminary approval for a $833 million plan aimed at keeping the company afloat. Bondholders in all of Kvaerner's eight bond loans backed the plan in meetings in Oslo. The company's stock rose 1.4 kroner to 13.4. A final vote on the proposal has been planned for Nov. 26. Kvaerner now has support for the rescue plan, which involves a share sale and debt refinancing. The company had said in September it was facing a cash shortage amid falling sales and soaring debt. Kvaerner shareholders will vote on the same plan on Nov. 29. "There are two alternatives for Kvaerner: Either approval for the rescue plan or bankruptcy," said Bernt Stilluf Karlsen, who represents Russia's AO Yukos Oil Co., which own a 22 percent stake and is Kvaerner's largest shareholder.