The Securities and Exchange Commission (SEC) has notified bondholders of Sabuy Technology (SABUY) of four series to exercise their rights during bondholder meetings scheduled for Thursday.
Bondholders are advised to review the provided information carefully and consult with the issuer or bond representatives to ensure they have sufficient details to make an informed decision on whether to approve or reject the proposals.
Sabuy, the issuer of the SABUY24DA, SABUY254A and SABUY258A bonds, is scheduled to hold the second bondholders' meeting of 2024 at 10am, while the meeting for SABUY263A is slated for 1pm the same day, both conducted via e-meeting.
Sabuy proposed to the bondholders of SABUY24DA and SABUY254A a request to extend the non-payment of interest on SABUY258A, due on Nov 18, 2024.
The non-payment of principal and interest on the bonds would not be considered a default under the terms and conditions, according to the company.
Sabuy will request bondholders approve the extension of the redemption period by an additional three years, with a reduction of the interest rate to 2-7% per year, effective from Nov 20, 2024 until the new redemption date.
For SABUY258A and SABUY263A, the company requested bondholders approve the extension of debt restructuring negotiations with financial institutions.
The company is also seeking approval to extend the redemption period by an additional three years as part of a debt repayment relaxation, which may include postponing or modifying the debt repayment schedule. This would ensure such actions are not considered a default under the terms and conditions.
Sabuy also requests the cancellation of the obligation to maintain the net debt-to-equity ratio throughout the bonds' maturity.
In addition, Sabuy seeks approval for the issuer or company to negotiate or enter into contracts with creditors to restructure the debt without it being considered a default under the terms and conditions, from Nov 20, 2024 to Dec 30, 2025.
Moreover, Sabuy requests an extension for the non-payment of interest on the SABUY258A bond due on Nov 18, 2024.
The non-payment of both principal and interest on the debentures would not be considered a default under the terms and conditions. This request includes the cancellation of the provision that would cause the SABUY258A bonds to become due immediately.
Sabuy requested an extension of the collateral value for SABUY263A to a ratio of at least 1.5:1.
In addition, it seeks approval to place additional collateral as replacement assets if the ratio falls below 1.5:1, effective from Nov 20, 2024 to Dec 30, 2025.
Sabuy requested an extension of the SABUY258A maturity by another three years and a change in the interest rate for each period to 2-7% per year, effective from Nov 20, 2024 until the new maturity date.
The company also requested a reduction in the interest rate for SABUY263A to 2% per year, effective from Dec 12 until the maturity date.
The SEC instructed the bond representative to analyse the advantages, disadvantages, benefits and impacts that bondholders will experience from the resolutions to approve or reject each option, clearly outlining the reasons for each decision.