15th Aug 2014 07:52
LONDON (Alliance News) - New World Resources PLC Friday said it will not make a coupon payment on senior unsecured notes set for expiry Friday after it did not receive a sufficient level of consent from locked-up noteholders.
The company said it would not go ahead with the payment on the USD375 million in senior unsecured notes as doing so would be a breach of its lock-up agreement and could jeopardise its restructuring process.
In July, the company said it had received executed lock-up agreements from 84% of its senior secured notes and 65% of the notes by value in support of its plans for balance sheet restructuring to avoid bankruptcy. Later in the month, it said it had started a court process to restructure its financial obligations by means of a sanctioned settlement with all or some of its noteholders.
New World Resources shares were down 7.1% to 9.75 pence on Friday, putting it among the biggest fallers on the London market.
By Sam Unsted; [email protected]; @SamUAtAlliance
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