17th Oct 2016 09:19
LONDON (Alliance News) - Avanti Communications Group PLC said Monday it has reached an agreement with a number of its creditors to issue additional debt instead of making a cash interest payment, as the company seeks funding or a buyer.
Avanti, an AIM-listed satellite operator, said it has reduced the cash interest payment owing on senior secured notes that were due October 1 to USD3.4 million from USD32.3 million, as 90% of its creditors accepted additional notes on the same terms as the existing notes in place of the cash payment.
The company said it expects to make the remaining cash payment due to note holders who did not accept the amendment, as well as a consent payment to those who did, on Tuesday.
"The company believes that the support of the holders of its senior secured notes for the consent solicitation process represents a significant step towards addressing the company's financing requirements," said Avanti.
On September 16 Avanti said it has engaged in discussions with a number of interested parties about potentially selling the company.
Shares in Avanti were up 1.9% at 25.99 pence Monday.
By Adam Clark; [email protected]
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