Vieo lacks tranche 1 equity for waiver, extension of financials

By Susanna Moon

Chicago, Aug. 15 – Vieo BV said it has not received the tranche 1 equity amount referred to in the notice of written resolution dated July 27 and approved on Aug 2.

As announced, the company was seeking bondholder approval for the waiver and amendments through a written resolution that had run until 11 a.m. ET on Aug. 1.

Specifically, the issuer was asking bondholders to waive two Aug. 27 deadlines for the delivery of financial statements and to approve a new deadline of Nov. 30.

The company said on Aug. 2 that it had secured the needed majority of bondholder consents to amend the bonds.

Bondholder approval of the proposal, however, was conditioned on a two-part buyback offer.

A €15 million tranche of new cash equity was to be deposited by Pareto Securities AS, the issuer’s financial advisor, by Aug. 15. That amount was to be used to settle the buyback offer by no later than Aug. 24.

After that, a second buyback of €15 million will be initiated on or before Oct. 15. The second buyback must be completed by Oct. 29.

“The company is working with Vieo AG to resolve this situation and is liaising closely with its ad hoc committee of bondholders and their advisers,” according to a notice on Wednesday.

Vieo added that it is close to finalizing the audit of its 2017 annual financial statements and publication of its interim accounts for the first quarter of 2018.

The waivers granted to the company under the written resolution remain in effect, the company added Wednesday.

In May, holders had granted extensions of the original deadlines, which the company was unable to meet.

The company was also asking to exclude new IFRS standards in the calculation of financial covenants under the terms of the bonds.

In addition, the issuer was looking to amend the maturity date to Sept. 7, 2020.

The issuer proposed an update to the call option so that the bonds would be callable in whole or in part at 101 from and including July 27 to but excluding the maturity date.

The proposal also included changes to some definitions.

Holders of 66.5% of the voting bonds needed to vote in favor of the proposals in order for them to be approved.

Questions may be directed to Pareto (+47 22 87 87 70) and at the bond trustee, Lars Erik Laerum (+47 22 87 94 06 or laerum@nordictrustee.com). Bondholders may also contact the legal advisers to the ad hoc committee, Kon Asimacopoulos from Kirkland & Ellis International LLP (+44 20 7469 2230 or kon.asimacopoulos@kirkland.com) and Richard Sjoqvist at BAHR (+47 22 016 803 or ric@bahr.no).

Vieo provides wireline telecommunication services and operates in the Netherlands.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.