Bondholders agree restructuring plan for Mobile-8

30 Jun 2009

Struggling Indonesian wireless operator Mobile-8 Telecom says bondholders have agreed to restructure bond debt worth IDR675 billion (USD66.2 million). Company secretary Chris Taufik is quoted as saying around 79% of bondholders at a meeting yesterday approved the proposed rescheduling which will be carried out in phases over five years, and agreed a cut in the bond coupon rate. The Mobile-8 spokesman added that the telco will not require an additional cash injection on the proviso it manages to record positive EBITDA in the first quarter of 2010. Under the deal struck yesterday, the debt maturity date will be rolled over from 15 March 2012 to 15 March 2017, while the coupon rates will be trimmed from 12.375% to 5% in 2009/11, to 8% in 2012/14, before being raised to 18% in the last two years of the agreement.

Indonesia, Mobile-8 Telecom