Vedanta Resources Gets Majority Support For Bond Restructure Proposal

Vedanta Resources Ltd. has received support from bondholders for its proposal to restructure four series of bonds.

Across the bond series, about 97.7% to 99.6% of the bondholders voted to approve an extraordinary resolution regarding consent solicitation, a company statement said on Tuesday.

The consent received is much higher than the required threshold of 66.67%. These series of bonds include two that were due for maturity in 2024, one in 2025, and one in 2026.

The holding company of India-listed Vedanta Ltd. is seeking to extend the debt maturity and amend certain terms and covenants to improve the credit package of the bonds, it said on Dec. 13.

On Dec. 22, Vedanta Resources extended the early deadline set for the consent solicitation to its bonds on Jan. 2 to accommodate feedback from bondholders who were facing operational issues.

The company will meet on Jan. 4 to pass the extraordinary resolution in respect of each series of bonds, the statement said.

The overwhelming consent to the revised terms will remove immediate pressure on Vedanta to repay the debt obligation.

Billionaire Anil Agarwal's Vedanta Resources had proposed restructuring four series of bonds to ease its massive debt burden in 2023.

Last month, Vedanta Resources said it has secured a $1.25 billion loan from private credit lenders to repay part of the $3.2 billion debt maturing in 2024 and 2025.