Shelter Afrique has written to its bondholders seeking permission to reschedule the payment of a sh 5 billion five-year medium-term unsecured note it listed on the Nairobi Securities Exchange in 2013, maturing on September 28, 2018.
The company claims that the purpose of entering into the Standstill Agreement is to allow it to preserve its existing capital and liquidity levels by deferring certain principal repayments on outstanding loans to enable it continue to run its operations.
The troubled housing financier has now invited the note-holders to pass the following resolutions;
to provide a “no-objection” to Shelter Afrique entering into a Standstill Agreement which defers the repayment of the principal amounts outstanding on loans with its current financiers and any other financiers who may subsequently enter into a deed of accession in respect of the Standstill Agreement, the current financiers being: European Investment Bank, KFW, AFD, AfDB, BOAD, GHIB, and ICD;
waive the right to declare an event of default by reason of occurrence
