Vedanta Resources extends time till January 2 for bondholders' consent

Vedanta Resources Ltd has extended till January 2 the deadline for seeking bondholders' consent on the new terms of the $3.2 billion bonds due between 2024 and 2025. The earlier deadline was December 27.

Vedanta Resources Ltd (VRL), the holding company of India-listed Vedanta Ltd, has offered $20 as a 'consent fee' for every $1,000 bond held, only for giving consent to change the terms of the bonds.

VRL had launched a consent solicitation process on December 13, seeking bondholders' approval to modify the terms of the bonds and covenants for its dollar-denominated bonds.


The company has proposed to holders of four bonds that a part of the principal will be paid upfront and the remaining will be extended into amended bonds.

Vedanta informed the Singapore Stock Exchange on Friday evening that the early consent deadline had been extended after they received feedback from bondholders facing operational challenges in submitting their consent.

VRL has sought consent from holders of $1 billion bonds maturing in January 2024 and August 2024, $1.2billion bonds maturing in March 2025, and $600 million bonds maturing in April 2026.

On December 13, Vedanta said it would pay a late fee of $2.5 for every $1,000 bond if the consent is given after December 27 but before January 2.

Now that the deadline has been extended to January 2, every bondholder who gives consent gets an early bird fee of $20.

For VRL to change the terms of the bonds, at least two-thirds of holders should give consent.

VRL has offered to pay 53% upfront payment bonds maturing in January 2024, 6% upfront for August 2024, and 16% for March 2025 bonds. It has offered to pay the balance 47% of bonds due in January 2024 in January 2027. The remaining 94% of August 2024 and 84% of March 2025 would be paid in three tranches - August 2027, August 28 and December 2028.

Holders of $1 billion due in January and $1.2 billion in March 2025 formed an ad hoc group led by Oaktree Capital Management and Avenue Capital to negotiate better terms for the three bonds. It advised investors to reject the proposed bond restructuring.

However, the ad hoc group split, lowering the chances of investors blocking the bond recast plans. Vedanta Resources said it is confident of restructuring the bonds, as reported by ET on December 21.