4 October 2018
Pursuant to the Terms and Conditions, payment of Interest on the Bonds should have been made on the Interest Payment Date falling on 24 September 2018. The Trustee is hereby informing the Bondholders that the Issuer has failed to pay Interest on such Interest Payment Date and consequently an Event of Default pursuant to Clause 14.1 (Non-Payment) of the Terms and Conditions is continuing.
According to the Issuer, the non-payment has been caused by a delay in completing the road constructions at the Issuer’s ongoing project at Karlholm Strand for which the Issuer shall be paid by the relevant municipality once completed. The delay in the road construction has also caused a delay in the divestment of building rights on the properties, which also has caused an additional liquidity shortage. The road construction is expected to be finalized within a few months.
On 28 September 2018, the Trustee together with its advisors had a meeting with the Issuer to discuss the situation and the next steps to remedy the breach. According to the Issuer and as communicated by the Issuer in the press release dated 12 September 2018, the Issuer is now intending to divest certain properties located in Järfälla and Helsingborg as soon as possible in order to reinstate the un-paid Interest. The Issuer is currently negotiating the divestment with an identified buyer, but final details of the sale are to be agreed upon. Following the divestment of the properties and the payment of the unpaid Interest (including default interest), amounts in excess thereof will in accordance with the Terms and Conditions be used to amortize the Senior Bonds. The Trustee is currently monitoring the sales process and will inform the Bondholders accordingly as soon as the Trustee has received more information on the progress.
Please note that Bondholders representing at least 10 per cent. of the Adjusted Nominal Amount may request that a Bondholders’ Meeting is convened for the purpose of deciding on a matter relating to the Finance Documents, including instructions to the Agent to accelerate the Bonds.
The formal notice can be downloaded here.
Best regards,
Kristofer Nivenius
Intertrust (Sweden) AB as Trustee
Kristofer Nivenius
Phone: +46 70 688 1910
Email: trustee@intertrustgroup.com
Koggbron Projekt AB (publ) as Issuer
Thomas Melin
Phone: +46 70 982 8273
Email: thomas.melin@koggbron.se