Sharechat Logo

Blue Star bond holders approve debt restructuring

NZPA

Wednesday 10th August 2011

Text too small?

The future of printing company Blue Star Group looks brighter after bond holders approved a debt restructuring today.

The future of the company that employs 800 workers in New Zealand had been in doubt ahead of the vote.

Bondholders voted 76.9 percent in favour of the refinancing proposal, surpassing the required 75 percent approval. The approval was the final hurdle of a refinancing.

"A cloud has been lifted from the company," managing director Chris Mitchell said.

The package includes the extension by senior lenders of existing funding lines, the provision of further liquidity and the easing of covenants, plus the provision of $15 million in new funding by the group’s principal shareholder.

"The board appreciates the decision of bond holders to give this company time to demonstrate that it can deliver on the repositioning and restructuring that it is undertaking to drive higher levels of earnings," Mitchell said.

Under the terms of the deal bond holders will receive their first interest payment in October 2013.

Bondholders were asked to forgive $32.3m in unpaid interest on their bonds since payments were suspended in August 2009 and to convert two-thirds of their $105m in $1 bonds into amended capital bonds at 64c. The other third is to be converted into limited recourse, subordinated participating bonds.



  General Finance Advertising    

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.

Related News:

28th October 2021 Morning Report
Wellington Drive Technologies Limited (NZX: WDT) Performs Strongly in Q3-2021
Ryman Healthcare Limited (NZX: RYM) Acquires Extensions to Two Existing Victorian Sites
Promisia Healthcare Limited (NZX: PHL) Banking Covenant Update
Pictor Limited Announces Start of US Clinical Trials for SARS-CoV-2 Serology Test
Arvida Group Limited (NZX: ARV) Opening of Rights Offer
Move Logistics Group Limited (NZX: MOV) Announces $40m Capital Raise
27th October 2021 Morning Report
The a2 Milk Company Limited (NZX: ATM) Investor Day 2021
Contact Energy Limited (NZX: CEN) Considers Green Capital Bond Offer