Vestel Elektronik, a Turkish white-goods maker, has proposed a restructuring plan for its 2029 bonds to shore up its balance sheet. Under the offer launched Tuesday, creditors can choose between two options: accept a 45% haircut on their principal and swap into new 2032 notes paying a 6% coupon, or keep their principal and extend the notes to May 2035 at a 4% coupon. Notably, the haircut option is capped at $250 million of the $500 million outstanding.
The 2032 notes would rank ahead of the new longer-dated bonds. This move is the latest step in Vestel's effort to overhaul its balance sheet after deteriorating earnings and mounting liquidity pressure. Bondholders will meet to vote on the proposal on November 11, with approval requiring support from at least 75% of bonds represented at the meeting.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing