Quintis noteholders extend forbearance agreement deadlines to Dec. 22

By Marisa Wong

Morgantown, W.Va., Dec. 18 – Quintis Ltd. secured another extension of some deadlines under the forbearance agreement for its 8¾% senior secured notes, according to a company news release.

Following the extension, the company has until Dec. 22 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 Ltd. 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 originally Sept. 15. It was previously extended to Sept. 22, Sept. 29, Oct. 13, Oct. 27, Nov. 10, Nov. 17, Nov. 24, Dec. 1, Dec. 8 and Dec. 15.

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.

Additionally, the noteholders agreed to forbear from taking action over Quintis’ failure to provide its financial statements for the quarters ended March 31, 2017 and Sept. 30 by their respective deadlines.

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.

Quintis is a Perth, Australia, producer of sandalwood.

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