Yesterday Cognor have commenced the exchange offer and the simultaneous UK court supervised process called scheme of arrangement. Based on the support of 69% of the holders Cognor hope to be able to finalize the refinancing by the next coupon payment date under the existing notes which is due Feb. 1st, 2014. Cognor have offered to exchange the existing notes into the new senior notes and the new exchangeable notes. Cognors’ shares necessary to comply with the provisions of the exchangeable notes will be secured solely by PSH Holdco, the actual main shareholder, by way of offering of its warrants and ordinary shares. The refinancing will not be dilutive for the minority shareholders. The detailed terms of the proposal will be made available shortly. The refinancing is designed to address the upcoming maturity of the existing notes as well as form a sustainable financing platform for the Company going forward. The terms of the refinancing are also designed to enable the Company to proceed with the intended mid-term CAPEX undertakings.
