Kinetic Engineering on Saturday informed the BSE that the company would not be able to redeem the bonds entered with BNY Mellon Corporate Trustee Services on the redemption date, which was February 15, 2014. The company said it was in the process of arranging funds and would soon enter discussions with the bond holders to finalise a repayment plan.
Kinetic Engineering had issued $1,800,000 2% foreign currency convertible bonds under a trust deed dated February 13, 2008 (as amended from time to time) and executed between Kinetic Engineering and BNY Mellon Corporate Trustee Services.
A notice sent to BSE from Kinetic Engineering read, “The company will be unable to redeem the bonds as on date of redemption, the company is hopeful of resolving this matter with the bond holders in an amicable manner.”
It further added, ?The company is in the process of arranging funds by disposing of certain investments. The proceeds shall be utilised towards repayment of the liabilities of the company including partially towards the Bonds…The company has written to the Trustee in this regard and hopes to soon enter into discussions with the Bond holders to finalise a repayment plan.?
