Vieo misses margin amount needed for waiver, extension of financials

By Susanna Moon

Chicago, Sept. 11 – Vieo BV has not settled the additional margin amount needed for the contingent waiver obtained on Aug. 2 and is holding negotiations with the bondholders ad hoc committee.

The additional margin amount was due on the interest payment date of Sept. 7, according to a notice by trustee Nordic Trustee AS.

In order for the waiver to be terminated, the bond trustee said it needs written notification from holders of at least 50% of the bonds.

The company said on Aug. 28 that it and its shareholder were holding “constructive” talks with the bondholders ad hoc committee about the equity injection needed for its buyback offer.

The discussions were to include clarification and amendments of principles and definitions in the bond documentation.

Vieo said it was also working to finalize the audited financial statements for the fourth quarter of 2017 and that it “remains committed to deliver Q1 and Q2 2018 interim financial figures as soon as the audit of the Q4-2017 financial statements is finalized.”

The company noted on Aug. 15 that it had not received the tranche 1 equity amount referred to in the notice of written resolution dated July 27 and approved on Aug 2.

As announced, the company was seeking bondholder approval for the waiver and amendments through a written resolution that had run until 11 a.m. ET on Aug. 1.

Specifically, the issuer was asking bondholders to waive two Aug. 27 deadlines for the delivery of financial statements and to approve a new deadline of Nov. 30.

The company said on Aug. 2 that it had secured the needed majority of bondholder consents to amend the bonds.

Bondholder approval of the proposal, however, was conditioned on a two-part buyback offer.

A €15 million tranche of new cash equity was to be deposited by Pareto Securities AS, the issuer’s financial advisor, by Aug. 15. That amount was to be used to settle the buyback offer by no later than Aug. 24.

After that, a second buyback of €15 million will be initiated on or before Oct. 15. The second buyback must be completed by Oct. 29.

Vieo added that it is close to finalizing the audit of its 2017 annual financial statements and publication of its interim accounts for the first quarter of 2018.

In May, holders had granted extensions of the original deadlines, which the company was unable to meet.

The company was also asking to exclude new IFRS standards in the calculation of financial covenants under the terms of the bonds.

In addition, the issuer was looking to amend the maturity date to Sept. 7, 2020.

The issuer proposed an update to the call option so that the bonds would be callable in whole or in part at 101 from and including July 27 to but excluding the maturity date.

The proposal also included changes to some definitions.

Vieo provides wireline telecommunication services and operates in the Netherlands.

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