HALISTER1: Ezion Bondholders Have Little Choice in Favoring Debt Plan: OCBC

Ezion Bondholders Have Little Choice in Favoring Debt Plan: OCBC

(Bloomberg) -- OCBC recommends noteholders agree to Ezion bond restructuring offer because failure may push the Singapore oilfield services group into a long court-driven process, bank says in Oct. 24 note.
  • Ezion’s restructuring terms deemed as lacking as bondholders get a token coupon for huge debt-maturity extension, lesser protection from removal of financial covenants and little incentive for co. to retire debt: OCBC
    • Still, the alternative to current terms could be debt acceleration and judicial management or liquidation
    • While recovery may improve, broad spectrum of outcomes is wider and time consuming
    • “Ezion is seeking to impose onto bondholders everything but a haircut to principal,” OCBC says
  • NOTE: Ezion calls meeting on Nov. 20 to seek consent for debt amendment
  • Earlier stories
    • Ezion Seeks Bank Funding, Bond Restructuring in Survival Bid
    • Ezion Informal Debt Proposal Has Room For Improvements: iFast
To contact the reporter on this story: David Yong in Singapore at dyong@bloomberg.net To contact the editors responsible for this story: Neha D'silva at ndsilva1@bloomberg.net Chan Tien Hin

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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EZI SP (Ezion Holdings Ltd)
OCBC SP (Oversea-Chinese Banking Corp Ltd)

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