The General Meeting of Holders of FESCO PLC’s Bonds Series BO-02 to Be Held on 27 June 2016
As part of the efforts of FESCO PLC (the “Company”) to restructure the debt of the Company and its subsidiaries (the “Group”), the Company proposes that the holders of exchange-traded bonds, series BО-02 (the “Bonds”) reconsider the Company's proposal regarding a waiver of early redemption rights and proposes that the holders waive their right to require early redemption of the Bonds, if such right arises, until 28 November 2016 (the “Waiver”).
This proposal takes into account the results of the vote at the general meeting of holders of the Bonds which took place on 6 June 2016, whereby the majority of holders of the Bonds supported the Company’s previous proposal for a waiver. If an affirmative decision is reached in the new meeting by the required percentage of votes (75% of the total debt outstanding under the Bonds), the Company will redeem 20% of the nominal amount of the Bonds no later than the close of business on 1 July 2016. Thus, the Company improves the parameters of its proposal included in the agenda of the previous meeting by withdrawing the proposal to defer the payment of 20% of the nominal amount of the Bonds.
Performance of the payment obligations under the Bonds in full is currently not an easy decision for the Company, as it forces it to divert a significant cash flow from the operational business. The above decision is based on the commitment of the Company to ensure the stability of the Group’s debt restructuring negotiation process. For the same purpose and in order to confirm its constructive position the Company has paid the coupon under the Bonds without any regard to the voting results in the previous meeting which allowed it to avoid an immediate payment default under the Bonds. Taking into account the interest of all stakeholders of the Group and to maintain sufficient liquidity, the Company is obligated to defer the payment of 20% of the nominal amount of the Bonds until and unless the Waiver is obtained by the proposed deadline.
FESCO PLC informs the holders of the Bonds that the voting on the Waiver will take place on 27 June 2016 in the form of absentee voting. The holders of the Bonds, which hold the Bonds at the close of business on 15 June 2016, may participate in the voting. The deadline for receipt of the ballots is 27 June 2016. The materials for the meeting will be published on the website of the Company.all publications