Reference is made to the stock exchange announcements made by Bulk Invest ASA ('Bulk Invest' or the 'Company') on 8, 15 and 26 February 2016 regarding the restructuring of the Company's liabilities related to its chartered-in fleet.

Over the past month, the board and management of the Company have worked intensively to achieve a successful restructuring of the Company's liabilities for the benefit of the Company's creditors and shareholders. In cooperation with its financial advisor, the Company has explored a number of different restructuring alternatives, and the Company's senior management and financial advisor have met with ship owners, intermediaries and financial creditors in Norway and Japan.

The final restructuring proposal presented to the ship owners included immediate cash payments to the ship owners, the continuance of the Bulk Invest group's charter parties at rates significantly above the current market, and an envisaged recapitalisation of the Company in the amount of approximately 40 MUSD. All creditors were given the opportunity to maintain their existing rights and claims.

The proposed restructuring would unquestionably have been beneficial to all key stakeholders, and a significant number of the vessel owners have accepted, or confirmed their keen interest in, the proposal. Moreover, the Company has through its financial advisor received firm interest in the proposed recapitalisation of the Company from reputable players in the industry.

However, as communicated through press release from Kyllingstad Kleveland Advokatfirma DA on 25 February 2016, seven ship owners represented by one trading house have filed an injunction to reverse the Company's sale of Western Bulk Chartering AS. The same ship owners have also firmly rejected the restructuring efforts of the Company. Regrettably, the board of directors of the Company has therefore come to the conclusion, after several extensions and attempts of dialogue, that there is no longer a basis for the Company to proceed with its restructuring efforts, and consequently, that there is no longer a basis for continued operations.

As the assumption of a going concern cannot be upheld, the Company will immediately file a petition for bankruptcy.

The board of directors of the Company's subsidiary Bulk Shipowning IV AS has reached the same decision to file for bankruptcy, whereas the respective boards of the Company's remaining subsidiaries have decided to continue their restructuring efforts for the time being.

As a consequence of the bankruptcy petition, all trading of the Company's shares will be halted. Since the Company will file for bankruptcy, in accordance with the above, the Company will request that further trading is stopped.

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For more information, please contact:
Jens Ismar, Chief Executive Officer
Tel: +47 9009 0897
E-mail: jens.ismar@bulkinvest.no

About Bulk Invest ASA:

For more information about Bulk Invest ASA, see www.bulkinvest.no.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Bulk Invest ASA issued this content on 03 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 03 March 2016 12:24:40 UTC

Original Document: http://www.westernbulk.com/release?xml=http://cws.huginonline.com/B/158865/PR/201603/1991601.xml