Business
Notification of Event of Defa
Notification of Event of Defa.
About this update from Kazera Global Plc
[{"type":"text","content":"\n RNS Number : 1668D KazakhGold Group Ltd 26 November 2009 \n \n26 November 2009\nKazakhGold Group Limited (LSE: KZG): Notification of Event of Default under its U.S.$200,000,000 Senior Notes due 2013\nFurther to information previously disclosed by KazakhGold Group Limited (\"KazakhGold\") in relation to its U.S.$200,000,000 Senior Notes due 2013 (the \"Senior Notes\") in the interim management statement dated 16 November 2009 (see \"Background to the Event of Default\" below), KazakhGold has been informed that the Trustee of the Trust Deed for the Senior Notes has notified holders of the Senior Notes (\"Noteholders\") that an event of default has occurred under the terms and conditions of the Senior Notes. The Trustee is awaiting instructions from Noteholders as to whether to take enforcement action in respect of this event of default, and the Trustee will be required to take such action if so directed by Noteholders holding an aggregate of 25% or more of the principal amount outstanding of the Senior Notes. In the event that the Trustee does take enforcement action, the Senior Notes, together with accrued interest, will become immediately due and payable. KazakhGold is considering all its options with respect to the Senior Notes. The Senior Notes are guaranteed by certain subsidiaries of KazakhGold, as well as by OJSC Polyus Gold following the completion of the partial offer for KazakhGold by Jenington International Inc., an indirect wholly-owned subsidiary of OJSC Polyus Gold, in August 2009.\nBackground to the Event of Default\nAs previously disclosed in the interim management statement of KazakhGold dated 16 November 2009, the Trustee had granted KazakhGold a 30 day 'grace period' (expiring on 20 November 2009) to remedy a breach of the terms and conditions of the Senior Notes that had resulted from the non-publication by KazakhGold of interim financial statements for the first six months of 2009. KazakhGold had taken the decision not to publish such interim financial statements since, as part of the extensive ser...