Jøtul AS Delays Interest Payment While Seeking Solutions
In light of its current financial situation, Jøtul AS has announced that it will postpone the interest payment due on its outstanding senior secured floating rate bonds. This decision affects the interest payment that was originally scheduled for 15 January 2025. Furthermore, the planned listing of these bonds on a regulated market, which should have been executed within one year of the first issue date, is also postponed.
Working Towards a Long-Term Solution
The management at Jøtul AS is collaborating closely with its main shareholder to identify and implement a sustainable financial strategy. They aim to achieve a commercial agreement with all stakeholders involved, and Jøtul AS is committed to communicating this solution comprehensively once it is finalized.
Potential Default and Bondholder Communication
The postponement of interest payments, coupled with the non-listing of the bonds, could lead to an event of default as defined within the bonds' terms. In response, Jøtul AS has proactively reached out to bondholders, representing over 40% of the adjusted nominal amount. The goal is to secure standstill confirmations and establish a structured procedure for a viable long-term resolution.
Engaging Advisors for Expert Guidance
Jøtul AS has enlisted the professional services of Alvarez and Marsal as financial advisors and Roschier Advokatbyrå for legal guidance to navigate this challenging period. This strategic approach highlights the company's commitment to overcoming financial hurdles with the assistance of experienced entities.
Company Background and Heritage
Jøtul is recognized as one of the world’s oldest manufacturers of stoves, inserts, and fireplaces. Established in Norway, the company boasts a legacy rich with craftsmanship and innovation over its 170 years of operation. With headquarters in Fredrikstad, Jøtul offers five distinct brands – including Jøtul, Scan, Ild, Ravelli, and Atra – and proudly exports products to 45 nations worldwide. This legacy informs the company's current operational ethos, even as it deals with modern financial pressures.
Contact Information for Inquiries
For more detailed information regarding this announcement, stakeholders and interested parties can reach out directly to:
Jøtul AS
Adrian Postolache
Group CFO
Tel: +47 458 79 680
E-mail: adrian.postolache@jotul.no
Frequently Asked Questions
What is the reason for the interest payment postponement?
The postponement is due to Jøtul AS's current financial situation and ongoing discussions with bondholders.
How long will the postponement last?
While no specific duration is mentioned, the interest payment will be postponed until further notice.
What impact does this have on the bonds?
The postponement could potentially trigger an event of default under the terms of the bonds.
Who is assisting Jøtul AS during this time?
Jøtul AS has engaged Alvarez and Marsal for financial advice and Roschier Advokatbyrå for legal support.
Can I contact the company for more information?
Yes, for inquiries, you can reach out to Adrian Postolache at Jøtul AS via the provided contact information.
