Quintis noteholders again extend deadlines under forbearance agreement

By Angela McDaniels

Tacoma, Wash., Sept. 22 – Quintis Ltd. received an extension of some deadlines under the forbearance agreement for its 8¾% senior secured notes, according to a company news release.

As previously reported, the company entered into the forbearance agreement with a majority of the noteholders after it failed to make the $10.9 million interest payment due on the notes on Aug. 1. The noteholders agreed to forbear from taking enforcement action related to the default arising from the missed interest payment until March 1, 2018.

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.

Following the extension, the company has until Sept. 29 to

• Agree to a recapitalization plan applicable to it on terms acceptable to a majority of noteholders;

• Agree to terms acceptable to a majority of noteholders with Asia Pacific Investments DAC to waive or defer the put option that enables Asia Pacific Investments to sell 400 hectares of plantations to the company at a predetermined price; and

• Agree to terms acceptable to a majority of noteholders to the contracts under which the company sold part of its loan book in 2016.

This deadline was previously extended to Sept. 22 from Sept. 15.

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 discussions with a number of parties about a recapitalization. The recapitalization, if implemented, will be subject to shareholder and regulatory approvals, due diligence and other conditions precedent. The company gave no guarantee that the recapitalization will be completed.

On Sept. 21, the company said the holders of a majority of the notes agreed to reduce its required minimum aggregate cash balance to $13 million less any payments made with respect to a put option agreed upon by a majority of noteholders from $18 million.

The minimum aggregate cash balance amount is required under the waiver related to the company’s failure to provide its financial statements for the March 31 quarter on time.

Quintis is a Perth, Australia producer of sandalwood.

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