More than 97% of bondholders say yes to Vedanta's bond restructuring plan

More than 97 percent of bondholders of Vedanta Resources Ltd (VRL) approved the restructuring of $3.2 billion worth of bonds due to mature in the next three years, the company said.

With this, the mining conglomerate has secured the required approval from at least two-thirds of the bondholders to proceed with the restructuring plan.

Bondholders had until January 2 to give early consent on a plan to extend repayment dates on $3.2 billion outstanding bonds. The meetings in respect of each of the four series of bonds will be held on January 4, following which the company will make an announcement about the passing of the extraordinary resolution in respect of each series of bonds and the execution of the amendment documents and the supplemental trust deed, Vedanta Resources said in a statement on January 3.

On December 14, the holding company of the Vedanta Group secured $1.25 billion from private credit lenders for debt refinancing and a new credit facility. The company said that fundraising will help create a long-term sustainable capital structure and demonstrate its continued ability to access global capital markets and investor confidence in the underlying business. Vedanta Resources said the loan was raised from a group of reputable financial institutions to refinance existing liabilities. The company did not disclose the names of the lenders.