Moser Baer plans restructuring of dollar bonds
Moser Baer India Ltd, which makes floppy diskettes and computer peripherals, plans to restructure dollar convertible bonds worth USD 150 million that are due on June 21, the company said.
June 14, 2012 / 17:37 IST
Moser Baer India Ltd, which makes floppy diskettes and computer peripherals, plans to restructure dollar convertible bonds worth USD 150 million that are due on June 21, the company said.
A sharp economic and corporate growth slowdown, weakening of the rupee that hit record lows last month and a plunge in the stock values have made the debt obligation very costly for some companies.Indian companies together face dollar convertible bond redemptions of nearly USD 5.5 billion this year.Moser Baer had issued two tranches of foreign currency convertible bonds (FCCBs), each worth USD 75 million, in 2007. The company will have to redeem or restructure the bonds because of a slump in its shares.The equity conversion price of the two bonds were fixed at Rs 407.64 and Rs 363.96 a share. Moser Baer stock was trading at about Rs 10 on Thursday, having lost more than a third of its value this year."Given the approaching maturity date of the bonds, we wish to inform you that we have been discussing various options in relation to the bonds with certain holders of such bonds," the company said in a statement to the Bombay Stock Exchange.Moser Baer will present a plan for restructuring the bonds to their holders for their consideration before the maturity date, it said. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
