LONDON (Alliance News) - DQ Entertainment PLC said Friday it has amended the terms of senior secured convertible bonds issued by its subsidiaries, to provide an extension to the period under which the bondholder can provide a second tranche of USD15 million of bonds.
The animation, gaming and live action entertainment and distribution company has extended this period to 18 months from the closing date, rather than 12 months, meaning this period has been extended to June 9 2016. To date around USD35 million has been drawn under the bonds.
As a result of this extension the company has also added new default conditions. These include Chairman and Chief Executive of DQ Tapaas Chakravarti ceasing to be a director or employee of the company and its subsidiaries, or a change in the composition of the board of the company or its subsidiaries without the previous consent of the majority bondholders.
DQ said that the bondholder has said that some default events have occurred under the current bond instrument, and that it is in discussions with the bondholder "in good faith" to resolve the situation.
Shares in DQ were down 5.6% at 4.25 pence Friday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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