AusGroup proposes 2-year extension of bonds worth S$110 million

AusGroup

01/07/2016 11:17

SINGAPORE, July 1 (Reuters) - Singapore-listed AusGroup 
 AUSG.SI  said on Friday it has proposed an extension of up to 
two years to holders of S$110 million ($81.8 million) worth of 
October 2016 bonds after poor financial results. 
    AusGroup, which provides services from construction to 
engineering and also operates in the troubled marine industry,  
breached a financial covenant when its consolidated total equity 
dipped below the minimum of A$160 million ($120 million) 
required in the bond agreement, triggering a default. 
    Under the terms, holders can immediately call for the bonds 
to be redeemed with accrued interest. 
    The Australian company has proposed two interest increases, 
one in October 2017 to 7.95 percent, and another in October 2018 
to 8.45 percent. The current coupon is 7.45 percent. 
    In a notice issued on the Singapore Exchange, advisor KPMG 
highlighted that any acceleration of the bond could mean 
bondholders may not recover their investment in full. 
    AusGroup holds a total group debt of roughly S$179 million 
($133 million). A meeting with bondholders of the S$110 million 
bond is set for July 18. 
    So far, AusGroup has received approval from DBS Bank to 
extend its repayment deadline of a A$11 million loan due August 
31 and a A$14 million loan due April 2018 to 2019 onwards. Ezion 
Holdings has also approved the extension of a A$37.2 million 
related party loan to 2019 onwards. 
(1 Singapore dollar = $0.7435) 
($1 = 1.3380 Australian dollars) 
 
 (Reporting by Paige Lim; Editing by Sunil Nair) 
 ((paige.lim@thomsonreuters.com; +65 68703964)) 
 
Keywords: AUSGROUP DEBT/