Date: October 28, 2016
The recent developments relating to a few corporate bonds, specifically in the companies that have defaulted in bond payments or have consent solicitations in process, have resulted in many bond holders to be stranded, not knowing whom to approach for help. Some bond issuers have proposed to bond holders to restructure their debt. In this situation, many of these individual investors, who have invested in these companies in sums in excess of $250,000 are unsure of their rights and how to seek redress. In some cases, such as in Rickmers Maritime, the issuer has arranged for legal assistance and engaged noteholders through informal meetings, e-mail communication and press and SGX releases. Nevertheless, unlike equity investors, bond holders are often not able to aggregate and meet to discuss their concerns with the relevant parties. In the recent episodes, some have approached legal firms for assistance with regard to their rights.
SIAS has been approached by some of the bond holders in the aforesaid situation for help. SIAS will be prepared to address these bond holders’ concerns and would be able to collectively represent the bond holders and also advise them of their rights in such a predicament. SIAS is also considering investor education issues in regards to these instruments.
SIAS is commencing by helping the bond holders of Rickmers Maritime, in cooperation with the company’s senior management who will be available to answer questions, to understand their rights and the various scenarios in a dialogue session scheduled on 2 November 7pm at SGX Auditorium. All Rickmers Maritime bond holders are invited to register with SIAS at admin@sias.org.sg.
David Gerald
Founder, President & CEO
Securities Investors Association (Singapore)
