Sale update

As announced on 1 February 2016 Western Bulk ASA (resolved amended to 'Bulk Invest ASA') (the 'Company') has executed a sale and purchase agreement in respect of its 100% owned subsidiary Western Bulk Chartering AS ('WB Chartering') with Kistefos Equity Operations AS, an entity wholly controlled by Kistefos AS (the 'Purchaser'), following an accelerated auction process involving identified interested parties (the 'Transaction').

Today, in order to complete the Transaction, the Company has transferred all of its shares in WB Chartering and all of its own bonds under the MNOK 300 senior unsecured bond issue with ISIN NO 001067557.2 (the 'Bond Issue'). In consideration of such transfers, the Company received payment of the first part of the cash purchase price for the shares, USD 10 million from the purchaser.

The remaining part of the cash purchase price will be paid to the Company on 2 March 2016. The purchaser will assume all of the Company's debt under the Bond Issue as soon it has been formally approved by the bondholder meeting and as soon as the necessary agreements have been concluded. The bondholders' meeting to make the requisite resolutions is scheduled to take place on 22 February 2016, please refer to the notice of 5 February 2016. As announced on 5 February 2016, the Company has received undertakings from bondholders representing more than 2/3 majority of the bondholders' meeting that they will vote in favour of the necessary amendments to the Bond Issue.

Restructuring update

The Company will initiate dialogue with its creditors to explore and pursue potential solutions. If no acceptable solution to the Company with the remaining creditors is achieved, the basis of the Company's continued operations will be reassessed.

The board of directors of the Company will regardless diligently and continuously evaluate whether the basis for continued operations exists. To this end, the board of directors will consider the possibility of carrying out a rights offering in the Company as announced 20 November 2015. The board notes in this connection that Kistefos AS has informed the Company that it given the current circumstances considers that its subscription and guarantee undertaking no longer applies. The board of directors will consider the legal position of the subscription and guarantee undertaking in conjunction with any rights offering. The board members that are affiliated with Kistefos AS will not participate in the board's dealings on Kistefos AS' subscription and guarantee undertaking.

For more information, please contact:
Jens Ismar, Chief Executive Officer
Tel: +47 9009 0897
E-mail: jens.ismar@westernbulk.com

Håvard Furu, Chief Financial Officer
Tel: +47 9912 3443
E-mail: havard.furu@westernbulk.com

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 08 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 23 February 2016 14:29:28 UTC

Original Document: http://www.westernbulk.com/release?xml=http://cws.huginonline.com/B/158865/PR/201602/1984390.xml