US $630 Foreign Currency Term Loan
As announced earlier, the Company with the support of and guarantee from its parent entity, Jindal Group has been working with its existing consortium of banks (Lenders) to obtain a Foreign Currency Term Loan of US $630 million approximately in two Tranches – to repay existing loans and to part-finance capital expenditures. To date, US $386.29 million has been disbursed by some of the Lenders to the Company through Jindal Steel & Power Australia Pty Ltd. Funds were used to repay existing loans.The Company continues to work with remaining Lenders.
Unlisted Convertible Bonds
Upon receipt of conversion notices for remaining160 bonds with face value of $50,000 each (plus accrued interest), the Company issued 1,019,726,268 ordinary shares on 5 February 2016 and further 1,452,337,412 ordinary shares were issued on 5 May 2016 after obtaining shareholders’ approval at the Extraordinary General Meeting held on 5 May 2016. The above mentioned 2,472,063,680 ordinary shares will be released from voluntary escrow on 5 August 2016. The Bondholder has commenced legal proceedings seeking declarations that the notices of conversion were validly exercised, that WCL was unable to convert the shares and that the Bondholder is entitled to have the bonds redeemed or alternatively damages paid (both in the amount of $8 million
plus interest). The Company will defend these proceedings.
Hell big debt!!!!!
That is the reason for the mkt cap now? or it could go even lower?
WLC Price at posting:
0.8¢ Sentiment: None Disclosure: Not Held
