In this announcement, reference to the “Funders” means the banks providing funding to CIG’s subsidiary, Consolidated Power Projects (Pty) Ltd. (“Conco”), who are parties to the Common Terms Agreement, which CIG and Conco entered into with them in or about May 2016, and the persons holding notes issued by CIG in terms of its Domestic Medium Term Note Programme, represented by funds and asset managers who between them represent more than 90% of the notes by value.
Shareholders are referred to the various SENS announcements relating to the extended waiver and debt standstill agreement, the last of which was released on 3 June 2019, informing shareholders that the Funders had agreed to an extension of its debt standstill agreements until 29 July 2019, with the expectation that the key conditions of the debt restructuring agreement were to be agreed before the end of June 2019. This was agreed with a view to implementing a more permanent funding structure thereafter.
The Company announced that it and Conco have concluded with their Funders on an agreed debt term- sheet which settles the terms and conditions of a restructure of the Company and Conco’s current debt due, on the basis described therein. The Company and Conco will now proceed to negotiate and conclude binding legal agreements subject to normal conditions precedents, including final credit approval for the term sheet and the legal agreements by 31 August 2019, or such later date as agreed between the relevant parties.
The Group is focused on concluding a finalised restructured debt agreement timeously.
In addition, the maturity dates of certain of the outstanding notes (CIG04, CIG05, CIG06, CIG09U and CIG10) have been extended to 30 September 2019.