Quintis today advises that it has executed a Forbearance Agreement with a significant majority of the noteholders (“Noteholders”) whereby those Noteholders have agreed to refrain from taking an enforcement action in relation to the default arising from the non-payment of the 1 August 2017 instalment of interest. The Forbearance Agreement will continue until 1 March 2018 unless it is terminated earlier upon the occurrence of certain events, including:
• Quintis is unable to agree to a recapitalisation plan by 6 September 2017; fails to make satisfactory progress towards recapitalisation in the opinion of any substantial Noteholder (being a holder of 5% or more of the outstanding Notes); or fails to implement a recapitalisation plan within 90 days of its agreement by the relevant parties;
• A majority of Noteholders determine, at any time, that commercial negotiations for the recapitalisation of the Company are not progressing to their satisfaction;
• The exercise by Asia Pacific Investments DAC (“API”) of a put option which enables API to sell 400 hectares of plantations to the Company at a predetermined price;
• If Quintis is unable to agree terms, acceptable to a majority of Noteholders, with API by 15 September 2017 to waive or defer the plantation put option;
• If Quintis is unable to agree terms, acceptable to a majority of Noteholders, by 15 September 2017 in relation to any “repurchase event” under the contracts under which the Company sold part of its loan book in 2016 (refer to ASX announcement on 29 June 2016); and
• If any new defaults occur under the terms of the Notes.
In accordance with the Forbearance Agreement, the Noteholders have directed the Trustee of the Notes not to initiate any enforcement action in relation to the default for the non-payment of the 1 August 2017 instalment of interest during this forbearance period. Page 2 of 2 During the forbearance period, interest continues to accrue on the Notes, including interest on the instalment of interest that was due on 1 August.
