Freshfields Bruckhaus Deringer LLP ('Freshfields') has advised Nordic Trustee ASA in relation to the financial restructuring of Sterling Resources (UK) Ltd. ('SRUK'), an exploration and production company with oil and gas operations primarily in the North Sea, and Sterling Resources Ltd. ('SRL'), the SRUK Canadian holding company.

Prior to the restructuring, SRUK owed over U.S.$210 million to its bondholders. Since mid-2015 Freshfields has advised Nordic Trustee ASA, which acts as bond trustee for the holders of SRUK bonds listed on the Oslo Børs, with a view to reaching a consensual restructuring satisfactory to SRL, SRUK, Nordic Trustee ASA and the bondholders. Freshfields had also been working closely with Norwegian and Canadian advisors to develop an alternative strategy in the event that a consensual restructuring was not feasible.

The restructuring required SRL to conduct a rights offering through which existing shareholders could acquire additional shares in SRL. All shares not taken up would be issued to the bondholders in a debt for equity swap and proceeds from the rights offering were used to pay down the bond debt. The bondholders received approximately 97% of the share capital of SRL in return for a write down in bond debt to U.S.$40m. Certain bondholders and their affiliates also provided U.S.$40m of new money.

The Freshfields team was led by partners Adam Gallagher, Sean Lacey, Sam Newhouse and Alan Rae Smith.