Crisis-hit cement and construction company, Jaiprakash Associates Ltd. on Saturday said 92% of bondholders approved restructuring of $120 million foreign currency convertible bonds maturing in 2020 and 2021.
In February, the debt-ridden company had announced plans to restructure these bonds.
On Feb. 27, Jaiprakash Associates informed that the company has executed a non-binding term sheet and related accession agreements with an aggregate of about 70% of the holders of (i) the $38,640,000 FCCBs due September 2021 (Series A Bonds); and (ii) the $81,696,000 amortising FCCBs due September 2020 (Series B Bonds).
The agreements contain the primary terms of the proposed restructuring of such bonds.
In a regulatory filing on Saturday, the company apprised that more bondholders have accorded their consent to the bond restructuring by signing an accession agreement with the company.
So far, the company said it has executed the non-binding term sheet and related accession agreements with (i) 93.99% of holders (by principal value outstanding) of the Series A Bonds and (ii) about 91.67% of holders (by principal value outstanding) of the Series B Bonds.
Cumulatively, 92.57% of the collective holders of the Series A Bonds and the Series B Bonds have given their consent.
The bonds restructuring is proposed to be implemented through a process, which involves passing of the necessary resolutions by the relevant bondholders and undertaking the relevant amendments to the existing trust deed related to these bonds.
"The bonds restructuring will be subject to various approvals, including the approval of the shareholders of the company, the Reserve Bank of India and other legal and statutory authorities (if required as per applicable law)," Jaiprakash Associates said.
For the last few years, the company has been selling its cement plants to reduce its huge debt.
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