AusGroup seeks bondholders' approval to amend bond covenant
Add BT as a preferred sourceDeeperDive is a beta AI feature. Refer to full articles for the facts.
ENGINEERING services firm AusGroup is seeking the approval of its bondholders to amend the financial covenant in its bonds due 2016 in case its interest coverage ratio falls below 2:1, the threshold currently provided for.
The group said the start of full operations of its Port Melville fuel facility had been delayed due to longer-than-expected environmental and regulatory approval process. While it eventually started in Nov 23, the delay may adversely affect the results of operations of the group.
The group is therefore proposing to establish an "Interest Service Reserve Account" secured in favour of the trustee for the noteholders, into which it will deposit certain amounts if the interest rate coverage ratio falls below the threshold of 2:1. The money will go towards the payment of the interest of the notes or eventually the principal amount, and will not be withdrawn by the firm even if the interest coverage ratio equals or exceeds 2:1.
AusGroup said it is confident of its ability to service all payments on the notes.
Copyright SPH Media. All rights reserved.
TRENDING NOW
Shelving S$5 billion office redevelopment plan proved ‘wise’ as geopolitical risks mount: OCBC chairman
Why where you park your joint venture matters: Lessons from a US$689 million shareholder dispute
China pips the US if Asean is forced to choose, but analysts warn against reading it like a sports result
Singaporeans can now buy record amount of yen per Singdollar
