NZFSU talks to bondholders after breaching covenant

NZ Farming Systems Uruguay (NZFSU) has requested an urgent meeting with holders of US$30 million ($NZ40 million) of bonds in Uruguay after breaching a covenant on the bonds.

Under the covenant it had to provide a copy of its business plan to all bondholders through a fiduciary by February 18.

The business plan was provided to most bondholders but was not provided to the fiduciary by this date. The breach was unintentional but it constitutes an event of default under the terms of the bond issue and gives bondholders the option to request redemption of their bonds.

The company is seeking a waiver of the breach with the fiduciary and has requested an urgent meeting of bondholders which is expected to be held within days. It does not anticipate any adverse reaction from bondholders.

NZPA

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Related News:

AIR - Air New Zealand market update
May 14th Morning Report
PEB - Pacific Edge Placement Increased to NZ$25.4 Million
Radius Care Reports Earnings Growth and 50% Higher Dividend
May 13th Morning Report
Pacific Edge launches capital raise of NZ$24 million
SML - Resignation of Synlait Director
FBU - Sale of Laminex Cheltenham property
CVT - Comvita Achieves Minimum Capital Raise Requirement
Devon Funds Morning Note - 04 May 2026