Real People gets bond deadline extended
Investors have given SME lender Real People five extra months to settle a defaulted loan opting not to turn their debt to shareholding.
Read also: Real problems in real estate
Last month the firm warned that the medium-term bond that matures in August 2018 with a nominal value of Sh267 million will not be able to be redeemed by the company.
The company said it was in negotiations with all the bondholders to convert the bonds into share capital.
The firm had a three year Sh267 million medium-term note matured on Monday and a five-year Sh1.036 note matures in 2020 whose repayment was also put in question.
In a notice, Real People said that it had met the investors of the Sh1.3 billion notes, to renegotiate terms for the bond that matured on Monday and they resolved to wait for payments till January.
“The noteholders by means of a special resolution resolved that the maturity date for the 13.65 fixed rate note be extended from August 6, 2018, to January 6, 2019,” a notice read.
Real People was however required to pay interest on the loans so as not to completely default.
