Wednesday July 1, 11:42 PM
Pearl bondholders say will not support float
LONDON, July 1 (Reuters) - Bondholders in British insurer Pearl Group said on Wednesday they would not back a proposed re-listing of the group because of concerns over treatment of the bonds.
Debt-laden Pearl on Monday said it would float on the London Stock Exchange (LSE: LSE.L - news) by selling itself to Euronext (Paris: NL0000290641 - news) -listed takeover vehicle Liberty Acquisitions, thus providing the group with 510 million pounds ($838 million) of new capital.
The holders of the 500 million pounds of debt securities said they were concerned about a lack of information concerning the notes, of which the most recent coupon remains unpaid, and said they had not yet received a response from Pearl regarding its plans for the notes.
'In light of its concerns, the noteholder group members consider that they would be unable to support or invest in any re-listing that Pearl Group may launch,' the group wrote in a statement.
Pearl, which is backed by entrepreneur Hugh Osmond, has total debt of about 3 billion pounds, most of which was taken out to finance its takeover of rival Clive Cowdery's previous venture, life assurance investor Resolution Plc.
It already angered the bondholders when in March it deferred making a 33 million pound interest payment on bonds issued by Resolution.
Pearl was not immediately available to comment on Wednesday.
The group was quoted on the Times (1832.HK - news) website as saying it was up to individual investors to decide whether to take part in a listing.
A spokesman told the Times: 'We have been in continuing dialogue with the bondholders and remain so. None of their rights have been affected.'
(Reporting by Victoria Bryan; Editing Bernard Orr) ($1=.6083 Pound) Keywords: PEARL BONDHOLDERS/
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