Hedge Fund Kyma Capital, which holds shares in Vedanta Ltd. (Indian subsidiary of Vedanta Resources Ltd (VRL)) plans to lodge a complaint with the US SEC over $956mn in loans by Vedanta Ltd. to its parent, according to a source. The hedge fund founded by ex-Blackstone trader Akshay Shah wants this amount to be repaid to Vedanta, which reported these loans in its annual report published last September. “The debt at Vedanta Limited is sustainable. The trouble is what is happening at the shareholder level.” said the source. In November, Kyma mentioned its concerns in a regulatory filing over what it called the ‘transfer of value’ from Vedanta Ltd to its parent VRL. Prior to this, Kyma lodged a complaint with Indian regulator SEBI and Vedanta’s board. The source noted that the complaint yielded no result. VRL has ~$1.9bn in bonds maturing through 2022 and recently launched a consent solicitation to incur more debt to for the purpose of acquiring shares in Vedanta Ltd.
Vedanta’s 13.875% 2024s were up 0.1 to 107.94, yielding 10.7% while their 9.25% 2026s were down 0.5 to 82.73, yielding 14%.
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