Date: September 24, 2019
On 20 September 2019, MEO hosted its second townhall meeting for the holders of MEO’s US$150,000,000 8.75 per cent Senior Secured Guaranteed Bonds Due 2018 (“MEO Notes” and “Noteholders”). At the townhall meeting, MEO explained its debt structure to the Noteholders and updated the Noteholders on the progress of the restructuring, including MEO’s efforts to secure an investment. MEO has engaged SIAS and appraised SIAS of the negotiations.
Over the course of the restructuring, SIAS has been engaging in discussions with MEO and the informal steering committee of Noteholders on MEO’s restructuring proposal with the view to improving the proposal. The restructuring proposal will now see Noteholders receive a higher recovery than if enforcement action is taken against MEO.
SIAS understands that Noteholders have a security interest that is junior to the senior secured lender of MEO, and accordingly, if enforcement action is taken against MEO or MEO is liquidated, Noteholders stand to receive zero recovery. SIAS considers this outcome ,if allowed, highly undesirable for the Noteholders.
In light of the fact that restructuring is the only viable option for the Noteholders to see any recovery, SIAS has urged MEO to focus its efforts on the best possible restructuring proposal for the Noteholders, given the reality of the circumstances.
Through these discussions, which remain ongoing, SIAS is heartened to note that MEO has secured significantly improved terms for the Noteholders under its restructuring proposal. The terms of the restructuring proposal can be found in the townhall presentation slides published on SGXNet.
Given that there is no other better proposal on the table, SIAS is of the view that bondholders should give serious consideration to MEO’s restructuring proposal.
Founder, President & CEO
Securities Investors Association (Singapore)