Bondholders rattled as F&N plays tough

[SINGAPORE] Unhappy bondholders of Fraser and Neave (F&N) are fretting that the conglomerate could play hardball and accept default rather than pay more to obtain waivers for the listing of its property business.

But observers said that for F&N to do so would be highly unusual, mostly because such an extreme solution usually comes with very high costs.

F&N, a beverage and property conglomerate, is asking holders of about $808.25 million of bonds to waive certain default terms on their notes and to allow the company to buy back the bonds at par plus half the coupon plus accrued interest.