Vibrant dangles 25-to-35 bps fee for waivers on S$66m of 7.5% bonds due 2020

MAINBOARD-LISTED Vibrant Group is seeking noteholders' approval to waive certain key obligations for its S$66 million series of 7.50 per cent notes due 2020.

The integrated logistics provider is asking, among other things, that noteholders add a mandatory redemption provision, which would allow the company to sell all of the shares it owns in Sabana Investment Partners for cash. Net proceeds from the sale will be deposited in escrow and used towards redeeming the notes.

In a statement to the Singapore Exchange before the market opened on Thursday, the group is also asking for waivers of "any requirement, covenant and term" in the trust deed and notes which would be breached as a result of, or in connection with the "Blackgold Events".

The Blackgold events refer to a number of developments that stemmed from accounting irregularities at Vibrant's coal production subsidiary Blackgold International Holdings. In early September, the group had announced that eight subsidiaries were facing litigation with respect to a claim that they failed to comply with certain payment and guarantee obligations, among others, under the finance documents relating to a 500 million yuan (S$100.7 million) loan facility for which they had provided security.

The suit was filed by China Minsheng Banking Corporation Limited (Chongqing branch) in the Chongqing People's High Court.

Vibrant has called for a bondholders' meeting on Oct 26, 2018 to vote on its proposal. Bondholders who give their consent by Oct 24 will be eligible for a 0.25 per cent consent fee, which will be sweetened to 0.35 per cent if consent is given before the early-consent deadline of Oct 17.

Vibrant Group's counter ended 1.71 per cent, or 0.3 Singapore cent down, to 17.2 Singapore cents on Wednesday.