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Capital World agrees on repayment terms with bondholder

CATALIST-listed Capital World on Monday said that it has agreed on the terms of repayment with convertible bondholder Chong Thim Pheng, after shareholders in January blocked the integrated property developer from issuing 39 million new shares to him as part of a settlement agreement.

Under the repayment terms, the company will fully repay the Series A Tranche 1 Bonds on March 25, including interest up to then, amounting to S$4.05 million. The payment will be funded by the proceeds that the company received from the allotment and issuance of 265 million subscription shares to PRG Holdings Berhad, announced on March 18.

Capital World will also fully redeem the Series A Tranche 2 Bonds on May 1, the original maturity date, including interest up to that date. Following this, Mr Chong will release 97.6 million of the charged shares to the chargors.

The firm will fully redeem the Series A Tranche 3 Bonds on July 31, the original maturity date, including interest up to that date. Mr Chong will then release the remaining 146 million charged shares to the chargors.

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Capital World added that on Feb 21, it received from Mr Chong a Series B subscription notice in respect of the Series B Tranche 1 Bonds. The Series B Tranche 1 Bonds have not been drawn down under the terms of the convertible bond subscription agreement.

The subscription is presently unable to be completed as both parties are in ongoing discussions regarding the nature of security to be granted, said Capital World.