Eitzen calls bond holders meeting

As part of the process of putting forward a new financial plan, on 21st September 2009, Eitzen Chemical called for a bond holders' meeting.

This was called to propose certain amendments to the loan agreement for the FRN Eitzen Chemical Callable Bond Issue 2006/2011.

It will be held on 29th September 2009.

The company has proposed to change the maturity date of the bond loan to October 2014 and to remove certain covenants.

Eitzen Chemical is also in the process of negotiating amendments to its current credit facility agreements to achieve a new and more favourable debt repayment schedule and covenant structure.

It has proposed to postpone all scheduled instalments until fourth quarter 2012; however, with a potential for variable instalments from 2010 based on Eitzen Chemical's financial performance.
It also proposed to remove covenants to achieve a new structure, which fits the current market environment and the company's financial position.
Eitzen also plans to complete a new issue of $100 mill to strengthen its liquidity buffer and balance sheet.

The proposed amendments to the loan agreements, including the bond loan, will be conditional upon successful completion of the equity issue, and in turn this will be conditional upon the lenders approving the proposed loan amendments.