The waiver of the existing outstanding bonds is in accordance with the company’s debt restructuring plan, which was approved by its shareholders on May 24.
Jaiprakash Associates’ bondholders have agreed to exchange existing outstanding convertible bonds worth USD 150 million, maturing in 2017 for bonds maturing at a later date, the company said in a notification to the exchanges.
Through this exchange, the bondholders will also be waiving defaults of existing bonds.
The bondholders will exchange their current bonds, which bear a coupon of 5.75 percent, for USD 38.64 million of bonds bearing the same coupon and maturing in 2021 and USD 81.69 million of bonds bearing a coupon of 4.76 percent and maturing in 2020.
The waiver of the existing outstanding bonds is in accordance with the company’s debt restructuring plan, which was approved by its shareholders on May 24. It includes some outstanding interest payment as well, in addition to the principal amount.
The company will also make some upfront payments to its bondholders, it said, in addition to the new bonds being issued.Shares of Jaiprakash Associates reacted positively to the development, gaining to 6 percent higher than their previous close moments after the notification hit the exchanges. At 1503 IST, they were trading at 14.24 rupees, 4.7 percent higher than their previous close.