Polarcus restructuring approved at EGMCompany News // January 28, 2016
Polarcus Limited says the restructuring plan it has proposed has with support from key stakeholders has been approved at an Extraordinary General Meeting (EGM).
The company said that the final step in the approval of the restructuring means that a majority of stakeholders in all stakeholder groups have approved the plan. As a result, the restructuring will now be implemented.
The restructuring provides the company with lower debt service and an improved balance sheet.It will reduce the company's debt level significantly with renegotiated lease terms and the introduction of new call option prices for the bonds corresponding to a target debt reduction of US$280 million. In addition, debt service payments during the next two years will be reduced by approximately US$140 million. All trade creditors of the company and its subsidiaries will remain unimpaired and will continue to be paid in full.
Rod Starr, the company's CEO, said: "The restructuring together with our current cash position, backlog and continued focus on cost efficiency will position the company for sustainability and future growth."