From Bloomberg (HT Reader Atul Mittal on my original post): Sterling Biotech Ltd. (SLT), a gelatin maker based in Mumbai, didn’t pay $184 million of convertible notes that matured yesterday, the biggest missed payment by an Indian company on debt that can be swapped for shares. The company is negotiating a new repayment schedule with [...]

Posted in Credit Repair, FCCB, STERLINBIO Comments Off

Sterling Biotech is in serious trouble. With plunging revenues and a very high debt cost, they’re now also going to have to pay back $183M worth Foreign Currency Convertible Bonds (FCCBs). (Read more about The FCCB problem) STERLINBIO (the NSE Code) borrowed $250 million in 2007, with a conversion price of Rs. 163.13 till May [...]

Posted in Credit Repair, FCCB, STERLINBIO, Stocks Comments Off

I’ve written about the upcoming FCCB problem, where a number of FCCB redemptions were coming around about now, and they were all so far under par that they would need to be redeemed, not converted to shares. Fitch has now released a report that classifies outstanding FCCBs in 2012 by stress levels and I shamelessly [...]

Posted in ChartOfTheDay, Credit Repair, FCCB Comments Off

There has been consternation about FCCBs recently, and this is a more detailed post on them. What are FCCBs FCCBs is basically like this: You give me dollars I give you “bonds” that have a coupon interest rate, which I don’t pay you, it accumulates over the period. At the end – or anywhere in [...]

Posted in Credit Repair, FCCB, Slider Comments Off