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Geo Energy seeks consent for waivers on S$100m notes due Jan 2018
GEO Energy Resources launched an exercise on Tuesday to seek noteholders' consent for certain waivers on its S$100 million notes due to a planned refinancing of the debt papers that mature in January 2018.
Under the consent solicitation exercise, the Indonesian coal miner is seeking a waiver on non-compliance with the negative pledge and certain financial covenants set out in the terms and conditions of the notes. It is also seeking to include a call option to allow it to redeem the notes at any time prior to its maturity date.
The waivers are granted provided that the notes are redeemed in full within 15 business days of the group incurring borrowings to refinance the notes, it said.
A noteholders' meeting will be held on June 14 to vote on the extraordinary resolution.
Geo Energy chief executive Tung Kum Hon said: "Due to the turnaround in Geo Energy's profitability, our balance sheet has materially strengthened even as we explored options to optimise our capital structure".
Hence, the company has set in motion a plan to refinance the notes before they fall due and an early return of capital to noteholders, he added.