Shares in the mid-sized
The proposal — which requires approval by shareholders and debtholders to be implemented — would reduce total debt by about
Bonavista would exchange all of its outstanding senior notes for new debt due in 2025 and 2035, and receive a new three-year revolving loan, while issuing new common shares equal to 89.7 per cent of the shares outstanding to senior debtholders.
Its other lenders would get 3.3 per cent of the company in exchange for reducing their outstanding debt by about half.
Bonavista says existing shareholders will have the option to sell their shares to
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