SriLankan Airlines launched a consent solicitation on December 23 to defer coupon payments. It also proposed a waiver of ongoing events of default for a 12-month period. Its USD 7% 2024s had a coupon payment due on December 25, 2022 and an upcoming one on June 25, 2023. It said that the combined coupons would be paid on December 25, 2023. The nation’s airline also requested a revision in the bond agreement for investors holding over 50% of the total principal to instruct the bond trustee to rescind and annul any notice given to the issuer to accelerate the bonds following an event of default. Investors who give consent to all three proposals will receive a full consent fee of 0.15% of the principal, while those who give consent to the first two proposals but not the third will receive a partial fee of 0.125%. Each proposal will be passed if it receives a majority of at least 75% of votes cast. The consent expires on January 17.
Its 7% 2024s have jumped higher from 42 cents on the dollar on December 28, to 51 cents on the dollar currently.
