Vallianz Holdings Limited and several of its subsidiaries enter into a framework agreement with their lenders to refinance some of the Group’s existing borrow ings totalling US163.2 million, the company said in its press release. The Agreement sets out the terms of the intended debt restructuring exercise to be undertaken by the Group.
Pursuant to the Agreement, the profile of the borro wings with the Lenders have been restructured to a repayment term of approximately 8.2 years from an average of approximately 5.8 years previously, the maturity of these borrowings have been extended to December 2022, and the Group shall grant the Lenders, inter alia , a shared security package over the shares of cert ain subsidiaries of Vallianz and certain fixed assets of the Group.
The completion of this debt restructuring exercise will result in a deferment of the repayment of the principal amount of borrowings owing from the Group, accordingly relieving the Group’s cash flow by US$103.5 million in the next 2 years.