Ezion rejects bondholder claims about share redemptionCompany News // September 28, 2017
Singapore-based Ezion Holdings has rjected a request from a bondholder for the early redemption of a share of its SGD 120m ($85m) bond.
In a statement, the company said that, on 21 September 2017, it received a request from a holder of its Series 009 S$120,000,000 3.65 per cent committed funding backed notes due 2020 (ISIN: SG6YH5000005) for redemption of his notes on the basis that the company’s shares had ceased to be listed or traded.
In the request, the relevant noteholder relied upon Condition 6(i) of the notes as the basis for his request.
Condition 6(i) of the notes provides for redemption of the notes at the option of noteholders upon delisting or cessation of trading of the shares.
The salient terms of Condition 6(i) of the notes are reproduced below: "Redemption at the option of Noteholders upon Cessation of Trading of Shares In the event that the shares of the Issuer cease to be listed or traded on the SGX-ST, the Issuer shall, at the option of the holder of any Note, redeem such Note at its principal amount together with interest accrued to (but excluding) the date fixed for redemption being the date falling 30 days after
the Effective Date. In this Condition 6(i), "Effective Date" means the date of cessation of trading.”
The company said it wishes to clarify that the shares have not ceased to be listed or traded, and that the shares have only been suspended from trading, as requested by the Company and announced in the company’s announcement dated 14 August 2017.
Ezion said it is therefore of the view that Condition 6(i) of the notes has not been triggered and, accordingly, the right to require the company to redeem the notes has not arisen.