Quintis 8¾% noteholders forbear over missed Aug. 1 payment, financials

By Wendy Van Sickle

Columbus, Ohio, Aug. 31 – Quintis Ltd. has executed an agreement with holders of a significant majority of its 8¾% senior secured notes under which the noteholders agreed to forbear from taking enforcement action related to the default arising from the missed interest payment on Aug. 1, according to a Thursday notice.

Additionally, the noteholders agreed to forbear from taking action over Quintis’ failure to provide its financial statements for the quarter ended March 31 by the May 30 deadline. This forbearance supersedes the prior conditional waiver from a majority of noteholders announced on July 10.

The forbearance period will continue until March 1, 2018, unless it is terminated upon the occurrence of certain events, including

• Quintis is unable to agree to a recapitalization plan by Sept. 6, fails to make satisfactory progress towards recapitalization in the opinion of any holder of at least 5% of the notes, or fails to implement a recapitalization plan within 90 days;

• A majority of noteholders determine, at any time, that commercial negotiations for the recapitalization of the company are not progressing to their satisfaction;

• The exercise by Asia Pacific Investments DAC (API) of a put option which enables API to sell 400 hectares of plantations to the company at a predetermined price;

• Quintis is unable to agree terms, acceptable to a majority of noteholders, with API by Sept. 15 to waive or defer the plantation put option;

• Quintis is unable to agree terms, acceptable to a majority of noteholders, by Sept. 15 in relation to any repurchase event under the contracts under which the company sold part of its loan book in 2016; or

• Any new defaults occur under the terms of the notes.

During the forbearance period, interest continues to accrue on the notes, including interest on the interest payment that was due on Aug. 1.

The company said it is continuing recapitalization talks with a number of parties. The recapitalization, if implemented will be subject to shareholder, creditor and regulatory approvals.

“The discussions are well progressed but no binding agreements have been entered into and there is no guarantee that the recapitalization will be completed in this form or another form,” the Thursday company update concluded.

Quintis is a Perth, Australia producer of sandalwood.

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