Jaiprakash bond holders extend deadline for debt exchange offer

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Mumbai | Published: October 4, 2017 4:06:18 AM

Bond holders of Jaiprakash Associates have agreed to extend the deadline for a debt exchange offer to October 31, the company has disclosed in a statement to the exchanges.

jaiprakash, jaiprakash bonds, bond holders of jaiprakashMoreover, the bond holders have also agreed to certain other conditions, the company added.

Bond holders of Jaiprakash Associates have agreed to extend the deadline for a debt exchange offer to October 31, the company has disclosed in a statement to the exchanges.

Moreover, the bond holders have also agreed to certain other conditions, the company added. A long stop date usually indicates the last date by which a transaction should be done.

In June, the company had stated that its bond holders agreed to exchange its outstanding 5.75% $150 million convertible bonds and certain accrued but unpaid interest on the outstanding principal amount with two other bonds—the 5.75% $38.64 million convertible bonds due 2021 (Series A bonds) and the 4.76% $81.69 million amortising bonds due 2020 (Series B bonds).

Jaiprakash Associates had also stated that its bond holders agreed to waive all existing defaults under the terms and conditions of the existing bonds occurring on or prior to the restructuring effective date. The company had also indicated in the notification that it will make certain upfront payments in accordance with the terms of the Series B bonds.

The reason for the extension of the long stop date is not immediately known. The firm’s company secretary did not respond to a query over a phone call regarding the matter. According to Bloomberg, Jaiprakash Associates had issued the foreign currency convertible bonds in September 2012 to raise $150 million with the tenure being five years and one day and a conversion price of Rs 77.50, which was at a 10% premium to its closing price.

In March 2016, the company stated on exchange that it missed the interest payment on the bonds and will engage with bondholders to address the matter.

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