Company president and CEO Ricardo Sarmiento said in a briefing yesterday that the company had submitted an application for a second debt-equity swap
to the Securities and Exchange Commission.
Bankers have also held off on the debt-equity swap
with RCom`s stock falling to less than half of the agreed swap price.
* Debt-equity swap
according to Roberts and Remolona, is "a deal converting a developing country's debt into foreign equity in a domestic firm".
Before infusing fresh taxpayer money in DSME, the government requested corporate bondholders and commercial paper holders to agree on a 50 percent debt-equity swap
and 50 percent debt rescheduling on their receivables worth 1.5 trillion won.
It is principally engaged in asset management, investment and financing businesses, non-performing assets acquisition and disposal, cross-border financial services and industrial investment, asset management entrustment business, investment in property and related sectors, debt-equity swap
, mergers and acquisitions and asset restructuring businesses.
Although banks always had the option o convert debt to equity, the SDR allows lenders to bypass he pricing norms which requires the debt-equity swap
to take place at a six month average price.
The reorganization plan, largely a debt-equity swap
, would give bondholders $375 million in secured debt, 97.5% of stock in the reorganized company and another 2.5% stake to trade creditors and unsecured bondholders.
The report states that high profitability, capital injections by some banks, and debt-equity swap
of one bank have further improved the solvency of banking sector.
When companies go bankrupt, a debt-equity swap
is a fair and efficient solution.
The company has finalised the terms of financial contracts for a restructuring plan valued at more than USD3bn, which will include a USD1.4bn debt-equity swap
CVC is seeking refinancing options, with some hedge funds which bought at least half of the groupa[euro](tm)s AUD2.7bn (USD2.9bn/EUR2.2bn) senior debt maturing in February 2013, targeting debt-equity swap
deals, the report said.
Portugal's Banco Espirito Santo SA (BES.LB) is planning to issue up to EUR3.5bn in government-backed guaranteed bonds, and raise up to EUR790.9m in a debt-equity swap
to improve capital levels.