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Capital World misses bond deadline, strikes new repayment deal
CATALIST-LISTED Capital World will extend the repayment date of certain bonds, in a deal with convertible bondholder Chong Thim Peng, the board said on Thursday.
The developer had agreed in March that it would redeem S$3 million in Series A Tranche 2 bonds from Mr Chong on the original maturity date of May 1, inclusive of interest.
But it missed the deadline, and has since struck a deal to repay Mr Chong by May 31 instead, including extra interest at a rate of 10 per cent a year for the month.
"The board and management of the company are of the opinion that the terms set out above to fulfil the company's obligations under the convertible bond subscription agreement and the discharge of the charged shares are in the best interests of the company," said the board.
It reiterated in its statement that another S$4.05 million in Series A Tranche 1 bonds, including interest, has already been fully paid to Mr Chong.
Minority shareholders had earlier blocked the company from issuing 39 million new shares to Mr Chong under the settlement agreement, in a January vote.