A Better Idea

Last week we described how BW Gas’ decision to withdraw from the Norwegian tax system and today’s declining asset values had stressed its balance sheet requiring a substantial equity infusion in order to avoid breaching its covenants.

To add some cushion to today’s equity value in order to prevent the potential breach of its equity covenants as well as to deal with the continued turbulence in the financial and shipping markets, BW Gas has entered into an agreement to purchase Bergesen LNG from the company’s main shareholder, World Nordic SE. The total consideration to be paid for the shares of Bergesen LNG, which owns four LNG vessels, is $720 million, which will be paid through the issuance of 273.6 million new shares to the seller at a price of

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