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AusGroup flags potential event of default
MAINBOARD-LISTED AusGroup on Friday flagged a potential event of default tied to the restructuring of S$110 million medium-term notes.
AusGroup advised that ministerial consent remained outstanding for the purpose of the mortgage of a property in Australia that is included in a general security deed and mortgage tied to the MTN restructuring exercise.
The said property was reported to be AusGroup's Port Melville in Northern Territory, which was pledged as security to noteholders in seeking their support to push back the redemption deadline for the notes by two more years to 2018.
The Australian minister-in-charge would be away from Dec 16, 2016, to early January 2017, and as such the company was unable to procure the ministerial consent by Dec 19, 2016, a disclosure on the Singapore bourse stated.
Although it was not entirely clear whether ministerial consent was required for the mortgage, the approach taken by the Australian government department was that ministerial consent would nevertheless be required, the Northern Territories legal counsel to the security trustee had informed AusGroup.
AusGroup on Nov 21 said the general security deed and mortgage are conditional upon, among others, a written ministerial consent if applicable. Failure to obtain the consent by Dec 19, 2016, may constitute an event of default under the notes.