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Subex has reportedly said that the Reserve Bank of India (RBI) has given it the go-ahead to extend the maturity period of all outstanding FCCBs to July 9, 2012.
Subex had asked the RBI for the extension in order to have adequate time to complete the re-structuring activity it is undertaking with the existing bondholders.
Subex has convened a meeting of the bondholders on March 6, during which the bondholders are expected to approve this extension. With the approval, the process can proceed to the second stage.
Thereafter, the second stage reportedly entails a few of the bonds getting converted to equity thereby reducing the overall debt and improving the debt-equity ratio. Once completed, this step is expected to positively impact the company?s balance sheet.
Subex has an outstanding FCCB worth $94 million. These bonds mature from March 9, 2012. Including the premium of the bonds, the total outstanding redemption will be around $131 million.
