Thursday July 2, 03:27 AM
UPDATE 1-Pearl bondholders say will not support float
LONDON, July 1 (Reuters) - Bondholders of British insurer Pearl Group said they would not back a proposed re-listing of the group because of concerns over treatment of 500 million pounds of bonds issued by a group that is now a Pearl unit.
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 debt securities said on Wednesday 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 the bonds issued by Resolution.
A Pearl spokesman said it was in contact with all bondholders.
'We maintain a dialogue and have provided all information to them,' he said.
The group was also 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.
(Reporting by Victoria Bryan; Editing Bernard Orr, Gary Hill) ($1=.6083 Pound) Keywords: PEARL BONDHOLDERS/
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