Restructuring the financial obligations of Sava d.d. - information on a proposal given to the holders of the SA02 bonds
Under the loan obligations restructuring agreement concluded this July, Sava d.d., also made a commitment to trying to agree on the identical conditions for restructuring its financial obligations with the holders of the SA02 bonds. Based on the commitments given by Sava d.d., the holders of the SA02 bonds received a proposal of a written decision, which defines the proposed change in the bonds components with a request to confirm the written proposal, thereby expressing their agreement with the changed provisions and terms concerning the bonds. The proposal refers to a lower interest rate and that the same as agreed with the banks for bank loans restructuring, among other things.
The holders of the SA02 bonds will make their decision as to the changes in the conditions and provisions concerning the bonds until 8 October 2013. If the proposal of a written decision was adopted with a required majority, Sava would quarterly pay a lower, i.e. 1%, interest rate p.a., whereas the difference of 2% would be due for payment upon maturity of bonds, which is on 30 November 2014.
We believe that the holders of the bonds will also recognise that restructuring the financial obligations of Sava d.d. is a prudent decision, as it would enable carrying on the restructuring strategy drawn up by Sava, thereby assuring the basis for payment the obligations Sava has towards the bonds holders. The decision, however, depends on the holders of the bonds and Sava d.d. will announce it as soon as possible after the term for decision confirmation expires.
Sava d.d.
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