Norway-listed chemical shipper Eitzen Chemical has urged its shareholders to accept an exchange offer that will see the company move to Bermuda.

Eitzen established Team Tankers International (TTI) as a vehicle enabling its move to the Island.

“This is desirable as the new owners are substantially non-Norwegian and it is important for the group to operate under favourable, stable and predictable legislative and regulatory conditions,” Eitzen Chemical said in a letter to shareholders.

TTI has proposed an exchange of three Eitzen shares for one share in TTI to satisfy the minimum stock price of ten Norwegian kroner per share for its listing on the Oslo Børs exchange.

Jason Shipping and lenders involved in the company’s debt conversion have agreed irrevocably to the deal, accounting for 98.7 per cent of the shareholders. For the exchange offer to succeed, the company needs to gain the approval of 99.5 per cent of its shareholders by the February 28 deadline.

The exchange is part of restructuring the company after it ran into deep financial problems due to prolonged weakness on its freight markets. Towards the end of last year, its bondholders and creditors decided to convert $776 million of debt to equity, which gave them control of the company.

TTI plans an IPO of 3 million Norwegian kroner ($395,533) on the Oslo stock exchange as part of the deal.