Subex gets RBI nod to extend maturity of FCCBs to July 9

Moneycontrol Bureau

Bangalore-based software company Subex has received Reserve Bank of India approval to extend maturity period of all its FCCBs (foreign currency convertible bonds) to July 9 from March 9. "This extension was sought by the company to have adequate time to complete the re-structuring activity that it is undertaking with the existing bondholders," the company said on Monday. Subex has outstanding FCCBs worth USD 94 million and the total outstanding redemption will be around USD 131 million, including the premium of the bonds. The company expects bondholders too will approve FCCBs maturity extension at a meeting on March 6. The approval is just the first step of the restructuring process. In the second step, some of the bonds will get converted to equity, thus reducing the overall debt and improve the debt-equit ratio, Subex said. In 2007, Subex had issued FCCBs worth $180 million to fund an acquisition. The bonds, at that time, were convertible at Rs 656 a share in March 2012. The stock, however, has plunged since. At 10:00 hrs on Monday, it was trading at Rs 31.15, up 0.8% on NSE. Subex was one among 19 companies, which Fitch said last week had high likelihood of default on their FCCB payments or could restructure the FCCBs with significant distressed debt features. "Not withstanding what is being said in the press and by other agencies like Fitch, we certainly have no intention to default and we will not," Subash Menon, the founder Chairman, MD and CEO told CNBC-TV18 on Friday. Also Read: Subex wins multi-million dollar deal from African firm