Vedanta Wins Majority Backing to Amend its Dollar Bonds
Vedanta Resources Plc, a London-based mining company, has won majority backing from its bondholders to amend its dollar bonds. The company has been trying to restructure its debt since the start of 2020.
Background of Vedanta
Vedanta Resources Plc is a London-based mining company that produces copper, zinc, aluminum, iron ore, and oil and gas. It is the largest producer of zinc in India and the second-largest producer of copper in India. The company has operations in India, Zambia, Namibia, South Africa, Liberia, and Australia.
Vedanta’s Financial Struggles
Vedanta has been struggling financially since the start of 2020. The company has been trying to restructure its debt, which includes $1.7 billion of dollar bonds. The company has been in talks with its bondholders since the start of the year in an effort to restructure its debt.
Vedanta’s Proposal to Bondholders
Vedanta proposed a plan to its bondholders that would extend the maturity of its bonds from 2021 to 2024. The company also proposed to reduce the coupon rate on its bonds from 8.5% to 6.5%. The company also proposed to issue new bonds with a coupon rate of 8.5%.
Bondholders’ Response to Vedanta’s Proposal
The bondholders responded positively to Vedanta’s proposal. The bondholders voted in favor of the proposal, with more than 75% of the bondholders voting in favor of the proposal. The bondholders also agreed to waive their right to sue Vedanta for any losses they may incur as a result of the restructuring.
Vedanta’s Plan Moving Forward
Vedanta plans to use the proceeds from the bond restructuring to reduce its debt and improve its financial position. The company also plans to use the proceeds to invest in its operations and expand its business.
Impact of Bond Restructuring on Vedanta
The bond restructuring will have a positive impact on Vedanta. The company will be able to reduce its debt and improve its financial position. The company will also be able to invest in its operations and expand its business.
Conclusion
Vedanta Resources Plc has won majority backing from its bondholders to amend its dollar bonds. The company has been trying to restructure its debt since the start of 2020. The bondholders voted in favor of the proposal, with more than 75% of the bondholders voting in favor of the proposal. The bond restructuring will have a positive impact on Vedanta, as the company will be able to reduce its debt and improve its financial position. The company will also be able to invest in its operations and expand its business.