The company had pushed the early consent deadline from December 27 to January 2 on investor demand. Early consent fee of 2% will boost the overall return to the bond holders, who are already getting higher coupons on the bonds, said a consenting bondholder.
The original coupons were 13.875%, 6.125%, and 8.95% for January 2024, August 2024, and March 2025 bonds, respectively. The January 2024 bond’s coupon remains at 13.875%, while the August and March 2025 coupons rise to 13.875% from 6.125% and 8.95%, respectively.
The actual voting percentage remains unknown, with voting scheduled for January 4. Euroclear and Clearstream, the international securities depositories, will compile the data, present it to Morrow Sodali, which will be voted upon on January 4. For the restructuring plan to proceed, two-thirds of total bondholders must be present at the meeting, with a quorum of 2/3 of the 2/3 voting requirement for each bond. If the required quorum is not met, the company will call another bond holders’ meeting in next 14 days, which is January 18. If the consent solicitation conditions are not satisfied by January 29, the consent solicitation will be terminated, according to the company’s announcement.
“The company has received the requisite vote for the $1 billion bond maturing this month,” said a source.
A Vedanta Resources spokesperson did not respond to requests for comment.
