REA Finance holders approve amendments to 9½% notes

By Angela McDaniels

Seattle, July 11 - REA Finance BV said holders of its 9½% guaranteed sterling notes due 2015 and 2017 approved a series of amendments at a meeting in Amsterdam on July 10.

According to a previous news release, the amendments are to the trust deed for the notes and to a loan agreement between the company, PT REA Kaltim Plantations and parent company R.E.A Holdings plc relating to loans that form the principal security for the notes.

Under the amendments, debt owed by REA Kaltim to R.E.A. Holdings that arises under selected shortfall payment arrangements will not be considered "debt in the nature of borrowings" incurred by REA Kaltim.

The company said the proposed amendments are designed to reflect the fact that some loan balances originally owed by REA Kaltim to R.E.A. Holdings have been assigned to REA Finance and consolidated and that the proceeds of the notes issue have been on-lent by REA Finance to REA Kaltim.

The amendments will also allow noteholder meetings to be held in Amsterdam or another city chosen by the trustee and REA Finance, rather than in London or in another city chosen by the trustee and REA Finance as is currently required under the trust deed.

R.E.A. Holdings is a palm oil company based in London with activities in Indonesia.

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