All four junk-rated notes were indicated lower on Monday, Bloomberg-compiled data showed. The August 2024 bond posted the biggest drop, down 0.6 cents on the dollar to 62.6 cents at 1:45 p.m. in Hong Kong, its biggest decline in more than three weeks. Of the four bonds, three were trading below the 80 cents-on-the-dollar mark typically considered distressed.
With roughly $3 billion of US-currency bonds coming due over the next two years, the mining company needs to come up with cash. The board of India-based Vedanta Ltd. approved a plan to separate the business into six listed companies, according to an announcement on Friday.
That step, if successful, would pave the way for low-growth assets to be spun off for cash, while allowing investors to bet on some of the company’s newer ambitions, such as semiconductors.
The split-up is expected to be completed in the financial year ending March 2025. Parent Vedanta Resources has a $1 billion bond due in January 2024.
The firm is seeking to pay back only a portion in cash, with the remainder of the principal deferred for three years, Bloomberg reported last week, citing people familiar with the matter. The proposal is part of a debt-restructuring plan that also affects other dollar bonds due in the next two years.
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